Toyota Motor Corp. shares posted their biggest drop in three weeks after the company slashed its fiscal year production outlook by about 300,000 cars as the spread of COVID-19 in Southeast Asia impacts its ability to procure chips and other essential parts.
The world’s No.1 automaker said Friday it would be adjusting output in September and October and expects to produce 9 million vehicles in the fiscal year through March — down from the 9.3 million it previously anticipated. However, the company didn’t change its ¥2.5 trillion ($22.8 billion) operating profit forecast for the year.
Toyota shares fell as much as 2.5% during early trading in Tokyo on Monday — their biggest drop since Aug. 20 on an intraday basis. The stock is up more than 20% this year.