Toyota's Q1 profit nearly wiped out as coronavirus erodes car sales

Toyota Motor Corp posted a 98% plunge in its first-quarter operating profit on Thursday as the coronavirus pandemic halved it global sales.

Japan's top automaker reported a profit of 13.9 billion yen (roughly R2.28bn) for the April-June quarter, its worst since the June 2011 quarter. Still, it was better than an average estimate for a loss of 179 billion yen (roughly R29.35bn) based on a Refinitiv poll of seven analysts.

Toyota kept its forecast for an annual operating profit of 500 billion yen (roughly R81.99bn), which would be its weakest in nine years.

While business has begun to show signs of recovery, Toyota expects the pandemic will lead to a 13% drop in its global car sales the year to March 2021.