Toyota Posts First Quarterly Profit Drop in Two Years

TH-Reuters11-06

TOKYO, Nov 6 (Reuters) - Toyota Motor posted its first quarterly profit drop in two years on Wednesday, as slowing sales and production volume stalled the Japanese automaker's recent record run.

Toyota's operating profit for the three months to end-September totalled 1.2 trillion yen ($7.81 billion), down 20% from 1.4 trillion yen a year earlier and largely in line with the 1.2 trillion yen profit estimate average of nine analysts polled by LSEG.

The world's top-selling automaker maintained its profit forecast for the current year at 4.3 trillion yen. In recent quarters it has delivered hefty profits thanks to demand for its hybrids in the United States and other big markets.

The result comes after recent sales and output figures had already pointed to a modest slowdown for Toyota, in part due to heavy competition from Chinese brands in China and a now-solved production suspension of two models in the United States.

Operating income in North America, which includes Toyota's top market of the United States, was hit by deterioration in its sales volume and higher labour costs.

Operating income in China fell during the first half of the financial year mainly due to higher marketing costs as the company seeks to overcome heavy price competition against Chinese brands.

($1 = 153.7100 yen)

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Comments

  • Success88
    11-06
    Success88
    So sad that Toyota once a leading car company now seem like lost to China BYD.  Toyota you are a great car company please do not end up like Nokia. You must try to win BYD. 
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