Toyota’s operating profit for the third quarter of 2024 was 1.16 trillion yen ($7.55 billion), down 20% from 1.44 trillion yen ($9.3 billion) last year.
Japanese automaker Toyota Motor reported its first drop in quarterly profit in two years. Reuters wrote this in connection with the Toyota press service.
It found that Toyota’s operating profit for the third quarter of 2024 reached 1.16 trillion yen ($7.55 billion), which was 20% lower than last year’s 1.44 trillion yen ($9.3 billion).
Toyota shares rose 1.7% after earnings, lagging the broader market’s rise of 2.6%.
The decline in revenue is due to sales and production problems in two major markets – Japan and the United States. In early 2024, the world’s largest automaker is enjoying record profits as its focus shifts to hybrid models. But quality problems at Toyota’s HinoMotors truck and bus division, stiff competition from Chinese brands and the suspension of two US models have begun to slow sales momentum in recent months.
Toyota is expected to return to an annual global production level of 10 million units in the second half of this fiscal year, according to Toyota Chief Financial Officer Yoichi Miyazaki.
Toyota also revised its vehicle production plan for the current fiscal year by 1% to 10.85 million units, down 240,000 from last year. The company maintained its revenue forecast for the current year at 4.3 trillion yen ($28 billion).
We remind you that in the third quarter, the German automaker Volkswagen reduced its profit after taxes by 2.8 times to 1.576 billion euros compared to 4.347 billion euros for the same period last year.
Source: korrespondent
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