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Toyota’s Profits Fall
Toyota Motor Corp. reports its net income fell 23% to 487 billion yen ($4.3 billion) in its fiscal third quarter ended Dec. 31. The company blames the decline on unfavorable exchange rates and higher expenses.
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Toyota Motor Corp. reports its net income fell 23% to 487 billion yen ($4.3 billion) in its fiscal third quarter ended Dec. 31. The company blames the decline on unfavorable exchange rates and higher expenses.
But Toyota concedes it also was slow to respond to the sharp swing in consumer preferences in the U.S. from cars to pickup trucks, SUVs and crossover vehicles. That category accounted for 53% of the company’s sales in the U.S. compared with a 60% share for such vehicles in the market overall.
Global unit sales in October-December rose 3% to 2.28 million vehicles. But revenue receded 3% to 7.1 trillion yen ($63.1 billion). Operating profit plunged 39% to 439 billion ($3.9 billion).
Toyota says its quarterly revenue climbed 3% in Europe but shrank in all other major markets. Regional operating income dropped 7% in Asia, 47% in Japan and 53% in North America.
Net revenue for the company’s financial services dipped 2% in October-December. But operating income plummeted 57% to 42.7 billion ($38 billion). Toyota attributes the shrinkage to higher credit losses and less-than-expected residual values on used vehicles.
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