The company said on Thursday that Toyota Motor expects its operating profit to decrease by 20 % in the current fiscal year due to the weakest US dollar impact and uncertainty surrounding President Donald Trump’s definitions.
The world’s largest car maker expected 3.8 trillion yen ($ 26 billion) for the year ending in March 2026, a decrease from 4.8 trillion yen in the previous fiscal year. It is expected that currency fluctuations from profits by 745 billion yen, while the customs tariff may cost the company 180 billion yen in April and only.
At a press conference, CEO Koji Sato admitted lack of clarity on the definitions, saying that Toyota is still not sure of its rotation or future impact. The company’s results highlight the extensive risks posed by global trade tensions of the main manufacturers.
The operating profit for January to March increased by only 0.3 % to 1.12 trillion yen. North America, the largest market in Toyota, recorded an operating loss of 100 billion yen – from 28 billion yen per year – to a temporary closure at the Indiana factory.
Christopher Richter, a CLSA analyst, noted that while the strong demand remains, the situation may increase if the definitions persist. “If you need to raise prices, can you still increase sales?” He asked.
Toyota sales in China continue to decline, although the decline is less severe than those facing other Japanese auto manufacturers. Japan remained the most profitable area of the company, with 18 % in the fourth profit.
Toyota shares ended today with a decrease of 1.3 % after release of profits.
