Tokyo – Japanese automotive supplier Toyoda Gosei has reported a sharp decline quarterly sales and an operating loss during the three months to end of June, as the Covid-19 pandemic took its toll on global car industry.
Operating profit went into negative territory, at nearly Yen10 billion (€80 million), as the company reported a 47% decline in sales to Yen111 billion, the company said in its first quarter results statement 7 Aug.
Toyoda Gosei linked the poor performance directly to the restrictions caused by Covid-19 and the economic downturn caused by the pandemic.
“Despite a recovery in China after the resumption of economic activity, the economies of many countries were severely impacted.. [particularly in] the US and Europe,” said the company.
The situation, said Toyoda Gosei, was also “extremely difficult” in Japan, with both domestic and foreign demand falling sharply after the declaration of state of emergency in April and May.
For the full financial year, ending 31 March 2021, Toyoda Gosie said it anticipated flat operating profit on lower annual revenue.
The company now expects operating income to come in at Yen18 billion, marginally up from Yen17.8 billion reported last year. Sales are expected to fall 15% to Yen690 billion for the full year.
Toyoda Gosei said it will prioritise “future-oriented investment” and R&D to achieve the 2025 business plan, and to commercialise its new technologies such as e-Rubber.