Toyota Motor Corp. may see its operating profit reduced by about 30 billion yen ($277 million) for the current quarter after a series of earthquakes struck southern Japan and disrupted parts supplies to the world’s largest automaker.
Production shifts stopped late last week at Toyota’s Kyushu factories and will extend to other Japan assembly lines in stages throughout this week, Toyota said in a statement. Japan’s most devastating earthquakes since March 2011 began striking the southern island of Kyushu on Thursday and have halted some engine and parts production for Aisin Seiki Co., chip manufacturing for Renesas Electronics Corp. and Mitsubishi Electric Corp. and motorcycle output for Honda Motor Co.
Toyota’s loss of production may reach 56,000 vehicles for Toyota and Lexus and 7,500 units for minicar maker Daihatsu Motor Co., Koichi Sugimoto, a Tokyo-based analyst at Mitsubishi UFJ Morgan Stanley wrote in a report Monday. The 30 billion-yen estimated impact to operating profit may linger into the second quarter through September, he said.