Toyota Reports Declining Profits Amid Surging Costs And Shortages

Toyota Motor Corp. on Tuesday reported net profit in its second quarter fell 31% compared to the same period a year earlier, to $2.92 billion. It’s the automaker’s fourth consecutive quarter of declining profit, despite revenue for the quarter increasing 22% over last year. The company cited higher materials costs, reporting that the cost of products sold for the quarter increased 26% over last year. The company is also facing a persistent semiconductor shortage it says will continue to constrain output. The company cut its output target to 9.2 million vehicles for the fiscal year, down from 9.7 million.