Toyota Motor announced this Thursday that net profit fell by 37% in the first quarter of the Japanese fiscal year, between April and June, pressured by U.S. tariffs, the impact of which the Japanese company estimated at ¥450 billion, about €2.618 billion.
According to the world’s leading automotive manufacturer, the tariffs imposed since April by President Donald Trump significantly reduced the net profits of the company leader, which dropped to ¥841.345 billion, €4.895 billion, while its operating profit decreased by 11%, to ¥1.16 trillion, €6.749 billion, according to the results presented this Thursday. However, Toyota announced that sales revenue grew by 3.5%, to ¥12.25 trillion, €71.271 billion.
In the first quarter of the Japanese fiscal year, Toyota sold a total of 2.41 million vehicle units worldwide, representing a 7% increase compared to the same period last year, having recorded growth in nearly all its markets, including North America.
The Japanese company also revised down its earnings forecast for the current fiscal year, predicting a 44% decline in net profit to ¥2.66 trillion, about €15.476 billion, due to the impact of tariffs in the U.S.
Estimates from the automotive giant also indicate a decrease in operating profit of 33%, to ¥3.2 trillion, €18.618 billion, and a 1% increase in sales revenue, to ¥48.5 trillion, €282.174 billion.
“Despite all the external challenges, we will continue to make broad investments and improvements aimed at increasing vehicle sales, reducing costs, and expanding profits in the value chain, thus minimizing negative impacts”, stated Toyota.
The quarterly results of Toyota were released on the same day that the new general tariffs of 15% imposed by the U.S. on all Japanese imports came into effect, which will also affect the automotive sector.
