Toyota Motor First-Quarter Results

Toyota Motor is set to announce its first-quarter results on Tuesday. Here are the key details:

Net Profit Forecast

According to a poll of analysts by Quick, Toyota is expected to record a 7.7% increase in net profit to 793.85 billion yen ($5.62 billion) for the quarter ending June 30. This compares to a net profit of Y736.82 billion in the same period last year.

Revenue Forecast

The Quick poll also estimates that first-quarter revenue will have risen 15% to Y9.759 trillion, compared to the previous year.

What to Watch For

Margin: The operating-profit margin declined to 7.3% in the fiscal year ending March, down from 9.5% the previous year due to increased costs of parts and materials. Margin trends are of particular interest to investors as automakers worldwide face higher operating costs.

Outlook: In May, Toyota announced its expectations for this fiscal year, including a projected increase of 7.8% in group vehicle sales to 11.4 million units, a 2.3% rise in revenue to Y38.000 trillion, and a climb of 5.2% in net profit to Y2.580 trillion. Any changes to this guidance from the management will be closely monitored.

EVs: Toyota projected sales of around 202,000 battery electric vehicles for this fiscal year, up from approximately 38,000 units sold in the previous year. Updates on Toyota's EV strategy will be eagerly observed by investors. On Monday, the automaker announced its plans to accelerate local development of EV technology in China in response to growing customer demand.