Coronavirus hits vehicle makers, Toyota, Honda, hard as revenues drop in 3 months

Japanese carmakers, Toyota Motor and Honda Motor, said on Tuesday their quarterly vehicle sales had been dealt a severe blow by the coronavirus pandemic.

For the January to March period, the maker of the Prius hybrid and Lexus luxury vehicles saw its net profit plunge 86.3 per cent year-on-year to 62.3 billion yen ($588.5 million) and its operating profit fall 27.5 per cent to 384.1 billion yen. Sales were down 8.4 per cent to 7.1 trillion yen for the quarter.

For the previous financial year, Toyota posted a net profit of 2.08 trillion yen, up 10.3 per cent from the previous year and an operating profit of 2.4 trillion yen, down 1 per cent.

Sales fell one per cent to 29.9 trillion yen.

“The world economy changed from a trend of moderate expansion to a sharp slowdown due to the effects of trade frictions and the impact of COVID-19 spreading from China to North America, Europe and Asia,” Toyota said in a statement.

Toyota projects operating profit for the current financial year will fall 79.5 per cent year-on-year to 500 billion yen due to the pandemic.

Japan’s largest carmaker also expects its sales revenues for the year to March 2021 to drop 19.8 per cent from the previous financial year to 24 trillion yen, while withholding its net earnings outlook due to the effects of the pandemic, it said.

The Toyota group, including Daihatsu Motor and Hino Motors, expects its global vehicle sales for the year to fall 14.9 per cent to 8.9 million units, it said.

Toyota halted vehicle production in many parts of the world to contain the spread of the coronavirus.

It resumed normal operations in China in late March.

Meanwhile, Honda said its net loss for the January-to-March period more than doubled from a year earlier to 29.5 billion yen as a result of the pandemic.

Honda also posted an operating loss of 5.6 billion yen in the quarter, compared to a profit of 42.4 billion yen in the same period last year, while sales dropped 14.6 per cent to 3.46 trillion yen.

Honda has declined to release profit forecasts for the current financial year due to the effects of the pandemic.

For the year ending March 31, Japan’s third-largest carmaker booked a net profit of 455.7 billion yen, down 25.3 per cent from the previous year, and an operating profit of 633.6 billion yen, down 12.8 per cent.

Honda said sales were down 6 per cent to 14.9 trillion yen for the year.

Global vehicles sales fell 10 per cent to 4.79 million units for the year, the carmaker said.

The worldwide death toll from the coronavirus has surpassed 286,000, while there are more than 4.1 million reported cases globally, according to data compiled by Johns Hopkins University.

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

Buy and read digital replicas of your TRIBUNE titles by subscribing through E-VENDING

COVID-19: Afe Babalola Offers 15-Point Prescriptions For Resumption Of Schools
The Founder and Chancellor of the flourishing Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola (SAN), has offered prescriptions on how the Federal Government can reopen schools and universities … Read full story

60-Year-Old Nigerian Woman Who Was A Nurse For 40 Years Dies Of Coronavirus In UK
An ‘exceptional’ mother-of-four nurse who devoted her life to terminally-ill children has become the latest healthcare worker to be killed by coronavirus in Britain, the Daily Mail of UK reported. Eyitolami Olaolorun had been a nurse for 40 years, most recently working at Wellington Hospital, a private centre in St John’s Wood… Read full story

COVID-19: Buhari, APC Betrayed Almajarai, Poor Nigerians ― PDP
President Muhammadu Buhari and the ruling All Progressives Congress (APC) have completely betrayed almajarai and other downtrodden, poor and vulnerable Nigerians after using them to get into power in 2015, the Peoples Democratic Party (PDP) has alleged… Read full story

Unpaid Salaries: Polytechnic Staff Seek Akeredolu’s Intervention
Staff of the Rufus Giwa Polytechnic, Owo, Ondo State have called on the state governor, Mr Rotimi Akeredolu to intervene in the crisis in the institution, over the non-payment of their salaries for six months by the management of the institution… Read full story

I Rejected N8m To Promote Bleaching Creams, Says Ex-Big Brother Naija Housemate, Khafi Kareem
A former housemate of reality show, Big Brother Naija, Khafi Kareem, on Monday, May 11, spoke on how she rejected the sum of N8 million for promotion of bleaching creams from a company producing them. Khafi, who had a brush with her employer, the British Metropolitan Police, for taking part in the reality show and who… Read full story

The Wasting Fruits Of Benue
From time, Benue has maintained its prominence of being the food basket of the nation. It simply implies that the state is blessed with arable farmland. Aside this, it also plays host to the second largest river in the country, River Benue as well as other streams that run throughout the year, thereby providing accessible… Read full story

POLITICS: Predatory Politics Is The Norm Since The Passage Of Awo —Shonibare
Apart from Chief Obafemi Awolowo’s photograph being hung in the most prominent part of the wall in the main sitting room of our home and the fact that, even at primary school (Oke- Ira Primary and Preparatory School- which was the preparatory school of St Saviour’s School, Railway Compound, Ebute- Metta)… Read full story

Unity Meets Industry: How Igbajo People Built Century-Old Plank Business In Ibadan
Although Bodija timber market is the headquarters for the purchase of timber in Ibadan metropolis, the Sango market could be called a mega market in terms of size, operation and system of administration. The history of Sango timber market is the history of Igbajo community in Ibadan since the 1920s. Igbajo is ancient… Read full story

You might also like
Comments

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. AcceptRead More