Toyota cuts output target as profits tumble

STORY: Toyota’s profits have taken a tumble.

The automaker posted a worse-than-expected 25% drop in quarterly profit on Tuesday (November 1).

And cut its annual output target.

Operating profit for the quarter dropped to $3.79 billion.

That’s well short of analyst estimates of over $5 billion.

It’s the company’s fourth consecutive quarterly profit decline.

Toyota says it now expects to produce 9.2 million vehicles this fiscal year.

That’s down from previous forecasts of 9.7 million, but still ahead of last year.

The Japanese giant is battling surging material costs and a persistent semiconductor shortage.

It has warned that it remained difficult to predict the future.

Production did rebound by 30% in the latest quarter.

But the company warned last week that component shortages would continue to constrain output in the coming months.