A signboard with the Toyota logo in Surrey, England, August 2023
Peter Daisley | Getty Images News | Getty Images
toyota motors On Wednesday, the Japanese auto giant took the brunt of U.S. tariffs, missing operating profit expectations for the quarter ending September.
Below is a comparison of Toyota’s September quarter results and LSEG’s average forecast.
Sales: 12.38 trillion yen (approximately $81 billion) vs. 12.18 trillion yen Operating profit: 834.0 billion yen vs. 863.1 billion yen
The world’s largest automaker by sales reported a nearly 28% drop in profit from a year earlier, while revenue rose more than 8%.
The company reports six-month results from April to September, with quarterly numbers calculated by CNBC based on company statements and LSEG data.
Toyota has revised its full-year operating profit forecast for March upward from the previous forecast of 3.2 trillion yen to 3.4 trillion yen.
“Despite the impact of U.S. tariffs, strong demand supported by the competitiveness of our products led to increased sales volumes and expanded value chain profits, primarily in Japan and North America,” Toyota Motor Corporation said in its financial results report.
The company said it will continue to focus on increasing sales volumes, reducing costs and expanding value chain profits.
The company’s profits have fallen for two consecutive quarters since the U.S. introduced “reciprocal” tariffs in April. The Japanese government signed a trade agreement with the United States in July that lowered export tariffs to the United States to 15% from the 25% originally proposed by President Donald Trump. The 15% tariff went into effect on August 7th.
The value of automobile shipments from Japan to the United States has decreased significantly, with the export value decreasing by 24.2% in September, which was slightly lower than the 28.4% decrease in August.
On a sales volume basis, Toyota continues to enjoy strong demand worldwide. The company recently reported that car sales, including its luxury brand Lexus, reached 5.3 million units in the nine months to September, an increase of 4.7% from a year earlier.
