Sees FY oper profit at 2.4 trillion yen vs 3 trillion yen yrago
Q4 operating profit down 33 on year; shares slip 5
FY oper pft target, Q4 result both well below analyst estimates
39;Unprecedented increases39; in materials, logistics costs
39;We need to work with suppliers to cut costs39; CFO
TOKYO, May 11 Reuters Toyota Motor warned unprecedented hikes in raw material costs could slice a fifth off fullyear profit, a clear sign the world39;s top automaker by sales can no longer shrug off the supplychain crunch that has roiled the global industry.
Also reporting a 33 drop in fourthquarter operating profit, the Japanese giant saw its shares slide more than 5 on Wednesday, before closing down more than 4 their biggest oneday fall in two months. The Tokyo benchmark was up 0.3.
Toyota had fared well during the earlier months of a global semiconductor shortage, thanks to its larger stockpile of chips, but it has now joined rivals in slashing production thanks to the prolonged crunch, as well as China39;s fresh COVID19 restrictions.
The home of the famed Corolla compact car said it expects materials costs to more than double to 1.45 trillion yen 11.1 billion in the fiscal year that started in April, which it expected to deal with by switching to lowercost materials.
We need to think about how we can respond to material inflation by eliminating the distinction between original equipment manufacturers and suppliers and working together as one, chief financial officer…