Toyota recently announced its financial year 2023 (FY2023) second quarter results, which saw the Japanese carmaker post a profit of 562.7 billion yen from July to September this year. According to Reuters that figure is 25% less than the 772.2 billion yen that analysts had estimated.

Toyota reported a profit of 578.6 billion in the first quarter, so the second quarter result is less than encouraging. This is also the case when comparing to the second quarter of the last financial year (FY2022), which saw the carmaker report a profit of 749.9 billion yen.

Among the reasons cited for the lacklustre performance are rising material costs and the lack of semiconductor chips, the latter still being a big problem worldwide. Kazunari Kumakura, Toyota’s chief officer of purchasing said he had not expected the disruption to last this long, as reported by Financial Times.

“There will still be some constraints in semiconductors for automobiles as capital investment has not kept pace,” he explained, adding that Toyota has held daily emergency meetings with suppliers over the past two years to track components in short supply.

This has led Toyota to revise its production forecast for FY2023 to 9.2 million vehicles, 500,000 units less than its initial target of 9.7 million vehicles. Even so, the revised total is more than FY2022’s production of about 8.6 million units.