Toyota's net profit for the new fiscal year is expected to decrease by 22%.
On the 8th, Toyota Motor Corporation of Japan predicted that due to the ongoing tensions in the Middle East and rising raw material prices, the company's net profit for the new fiscal year will decrease by 22% compared to the previous fiscal year. Toyota announced in its financial report that, based on an exchange rate of 1 USD to 150 JPY, Middle East-related factors will collectively reduce operating profit by 670 billion JPY. As a result, the company's net profit for the new fiscal year is expected to decrease to 3 trillion JPY. The financial report also revealed that U.S. tariff policies have imposed a significant burden on Toyota. Despite implementing multiple measures, the company still struggles to offset the negative impacts of the U.S. tariff policies. During the previous fiscal year, factors such as tariffs led to a 21.5% decrease in Toyota's operating profit. Toyota's Vice President and Chief Financial Officer, Yoichi Miyazaki, stated that the new fiscal year will mark the third consecutive year of declining profits for the company. In light of the rapidly changing operating environment, Toyota has mainly focused on short-term responses and has not made sufficient progress in restructuring its business for the medium to long term.
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