lefigaro.fr
Toyota Maintains Forecasts Despite Q2 Profit Plunge
Toyota's Q2 net profit fell sharply due to weaker sales in China and Japan, but the company maintained its annual forecasts anticipating a production recovery.
French
France
ChinaFinancial PerformanceProductionGlobal MarketAutomotive SalesCompany Outlook
ToyotaBloombergBydHondaMazda
Yoichi Miyazaki
- How did production halts and recalls impact Toyota's sales performance?
- The decline in sales is attributed to several factors, including the recall of the Prius hybrid model, production halts due to certification irregularities, and intense competition from Chinese automakers like BYD in the crucial Chinese market.
- How did Toyota respond to the challenges it faced, and what is its outlook for the future?
- Toyota's CFO, Yoichi Miyazaki, acknowledged the need to prioritize safety and quality, indicating a shift in approach following production disruptions due to regulatory issues and recalls. The company expects a global production rebound to help offset the impact of weaker sales.
- Despite the disappointing Q2 results, why did Toyota maintain its annual financial forecasts?
- Despite the worse-than-expected Q2 results, Toyota maintained its annual financial forecasts, projecting a 28% drop in net profit to 3.57 trillion yen for the fiscal year ending March 2025. The company anticipates a production recovery in the coming months.
- What were the key factors contributing to Toyota's significant drop in net profit during the second quarter?
- Toyota's net profit plummeted 55% year-on-year in the second quarter to 573.8 billion yen ($3.5 billion), significantly below market expectations. This was primarily due to a stronger yen impacting export earnings and weaker sales in China and Japan.
- What is Toyota's revised sales volume forecast for the fiscal year 2024/25, and what factors influenced this revision?
- Toyota's revised sales volume forecast for fiscal year 2024/25 is 10.85 million vehicles, down from the previous forecast of 10.95 million. This downward revision reflects the challenges faced in the Japanese and Chinese markets.