Key facts
- Toyota's operating profit fell 9% to 1.06 trillion yen ($6.7 billion) in the first quarter.
- This is the fifth consecutive quarterly profit decline for the company.
- The company cited a slump in China sales and higher material/parts costs from the Iran war.
- Toyota raised its full-year profit forecast to 3.4 trillion yen, a 13% increase.
Toyota reported a 9% decrease in operating profit for the first quarter, reaching 1.06 trillion yen ($6.7 billion). This marks the fifth consecutive quarter of profit decline for the Japanese automaker. The company attributed the slump to a significant drop in sales in China and increased costs for materials and parts, exacerbated by the ongoing Iran war.
Despite the quarterly downturn, Toyota revised its full-year profit outlook upward by 13%, projecting 3.4 trillion yen compared to the previous forecast of 3.0 trillion yen. Analysts had anticipated a slightly higher profit of 1.11 trillion yen for the first quarter.
Globally, Toyota's sales fell by 1.1% in June, with 926,688 vehicles sold. Production, however, rose by 2.2%. Sales in North America and Japan helped to cushion steeper declines in other regions, including a 27% drop in China.