Toyota Navigates Tariff Turbulence, Profit Dips 37%
Toyota faced a 37% profit dip in the April-June quarter, largely due to U.S. tariffs. The Japanese automaker anticipates further impact, adjusting its annual profit forecast from USD 21 billion to USD 18 billion. Despite this, sales rose 3%, aided by efforts in cost reduction and increased unit sales.
- Country:
- Japan
Toyota reported a significant profit decline of 37% for the April-June quarter, citing U.S. tariffs as a substantial factor in their financial results. The company adjusted its full-year profit outlook to USD 18 billion, down from a previous estimate of USD 21 billion.
While the current tariffs are at 15%, Toyota anticipated a hike to 12.5% and based its forecasts accordingly. However, the company managed a 3% increase in quarterly sales, reflecting strong demand in markets such as Japan, North America, and Europe.
Efforts to combat the challenges include cost reduction strategies and investment in expanding the value chain. Analysts highlight that the impact of tariffs hits Toyota harder than its competitors. Despite these difficulties, Toyota sold 2.4 million vehicles globally this quarter.
(With inputs from agencies.)
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