Toyota Motor’s fourth-quarter net profit drops 31%

Toyota is grappling with a shortage of chips and higher costs of materials caused by supply-chain disruptions

Toyota Motor Corp. said Wednesday that its fourth-quarter net profit fell 31% compared with the same period a year earlier and projected a drop in earnings for new fiscal year due to higher costs.

The Japanese auto maker said that net profit for the quarter ended March 31 fell to 533.8 billion yen ($4.09 billion). That beat the estimate for Y469.68 billion from a FactSet poll of analysts.

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Fourth-quarter revenue increased 5.5% from a year earlier to Y8.112 trillion.

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The company logo adorns a sign outside a Toyota dealership in Lakewood, Colo. (AP Photo/David Zalubowski, File) (AP Photo/David Zalubowski, File / AP Images)

Like many other auto makers, Toyota is grappling with a shortage of chips and higher costs of materials caused by supply-chain disruptions.

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Fourth-quarter operating profit fell for Japan, North America and Europe, though it increased in Asia excluding Japan.

Ticker Security Last Change Change %
TM TOYOTA MOTOR CORP. 159.08 +1.56 +0.99%

Toyota said it expected group vehicle sales, including those of subsidiaries Daihatsu Motor Co. and Hino Motors Ltd. , to increase to 10.7 million units this fiscal year from 10.4 million units the previous fiscal year.

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It expects revenue this year to increase 5.2% to Y33.000 trillion and net profit to drop 21% to Y2.260 trillion, citing higher costs of materials and logistics.

Write to Kosaku Narioka at kosaku.narioka@wsj.com