Mexican Media Brands
Toyota’s Operating Profit Plummets 43%
Toyota Motor Corp. blames a strengthening Japanese yen and shifting consumer preferences for sharp profit declines in the fiscal second quarter ended Sept. 30.
#economics
Share
Toyota Motor Corp. blames a strengthening Japanese yen and shifting consumer preferences for sharp profit declines in the fiscal second quarter ended Sept. 30.
The company’s operating income for the period plunged 43% to 474.6 billion yen ($4.5 billion). Net income shrank 36% to 393.7 billion yen ($3.8 billion).
Toyota’s worldwide vehicle sales rose 3% to 2.5 million units in July-September. But revenue fell 9% to 6.5 trillion yen ($67.7 billion).
The company concedes it hasn’t been able to meet demand for crossovers and pickup trucks, especially in the U.S., where its sales are down 3% so far this year, according to Autodata Corp. Toyota car sales have slumped 11% and light-truck sales are up 5%. Toyota says its quarterly operating profit in the U.S. shrank 6% to 139.8 billion yen ($1.3 billion).
In Europe, Toyota’s sales in July-September expanded 5% to 212,000 units. Operating profit climbed 14% to 25.5 billion yen ($243 million).
Toyota has raised its full-fiscal-year guidance based on tougher cost-cutting measures and adjusted assumptions about currency exchange rates. Even so, the company expects the stronger yen to cause its net income for the 12-month period to sag 33% to about 1.6 trillion yen ($14.8 billion).
RELATED CONTENT
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.