Investing in Japan: TOYOTA announced its financial results, expects surplus for 2021

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TOYOTA's sales declined due to the COVID-19


On May 12, Toyota announced its financial results for the year ending March 31, 2020. Sales decreased by 1% from the previous year to 29,929.9 billion yen, and operating income decreased by 1% to 2,442.8 billion yen. 
Japan Investment and Tourism

 Due to the spread of new coronavirus infections, the car sales decreased by 127,000 pushing down operating income by 160 billion yen. 

 At the online financial conference held on May 12, President Akio Toyoda revealed a serious recognition that the impact of the COVID-19 is far greater than that of Lehman crises.

Dented badly but remain in the black

With regard to the business results for the fiscal year ending March 2021, global sales of  TOYOTA group as a whole will be 8.9 million units, down 14.9% from the previous year, and the operating income will decline by around 80% to 500 billion yen, due to the impact of the new coronavirus on global economy. 

 Although Toyota is gradually restarting production in Europe and the United States from this month in addition to recovering its production in China to its normal pace, it is assumed that the huge impact on its future sales will be inevitable. 

 On the other hand, announcing forecast of surplus for the fiscal year ending March 2021, in which sales volume is expected to decrease more than that of the Lehman crises, shows that Toyota's financial position has improved significantly since then. Immediately after the Lehman crises in 2009, Toyota posted an operating loss of 461 billion yen. 

 While many companies postponed to announce their financial forecast for the fiscal year ending March 2021, Toyota has announced its financial forecast partially besides its sales plans and demand trends. This will reinforce investor’s confidence in Toyota further more.

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