Investing in Japan: Toyota lifts profit forecast for FY 2021 despite pandemic’s supply chain damage
Toyota has demonstrated greater flexibility in adapting to supply chain disruptions Toyota Motor Corporation is a Japanese automaker which investors around the world admire its strong business profile, the highest margin in its peer group and resilient credit metrics that provide significant downside resiliency. Even Toyota is facing difficult business conditions this year such as a shortage of semiconductors forcing Toyota to reduce its production and rising raw material prices, the new coronavirus infection’s lingering effects. However, Toyota has managed to revise its earnings forecast for FY 2021 upward by securing higher than expected profits through strengthening sales of profitable SUVs, efforts in rationalization and the tailwind of the depreciation of the yen. Toyota has demonstrated greater flexibility in adapting to supply-chain disruptions since the beginning of the Covid-19 pandemic, which resulted in a continuing advantage for Toyota when supply normalizes. Toyota M