The world's biggest automaker by vehicle sales stuck by its forecast made in May for an operating profit of $22.93 billion for the current fiscal year.

Toyota shares fell 2% in afternoon trading on Wednesday, extending losses from the morning session, with some investors disappointed that the company had not lifted its profit guidance.

"In the first quarter, we have seen the results of our improvement activities, despite the severe business environment," Toyota said in a statement.

"We will continue these activities in the future, but the situation is still unpredictable due to the expansion of COVID-19 in emerging countries, semiconductor shortage, and soaring material prices."

Operating profit at Japan's biggest automaker rose to $9.15 billion for the three months ended June 30, higher than an average estimate of $7 billion based on 10 analysts polled by Refinitiv.

Profit for the latest quarter was also boosted by favourable foreign exchange movements.

--Reuters--