Toyota Beats Q3 Profit Views, Lifts Annual Forecast

Toyota Reports Strong Q3 Earnings, Upgrades Forecast

Toyota Motor Corp (TYO:7203) announced fiscal third-quarter operating income that surpassed analyst expectations, driven by strong sales volumes and a favorable weak yen. This performance helped the automaker navigate headwinds from U.S. trade tariffs.

Financial Performance Overview

For the three months ending December 31, operating income was 1.191 trillion yen ($7.6 billion), exceeding the 1.06 trillion yen estimated. However, net income attributable fell over 40% year-on-year to 1.257 trillion yen, while revenue increased by nearly 8% to 13.457 trillion yen.

Revised Outlook and Leadership Transition

Citing robust sales and cost-cutting measures, Toyota raised its annual operating profit forecast to 3.8 trillion yen from 3.4 trillion yen. The company slightly trimmed its annual vehicle sales forecast to 9.75 million units. Separately, Toyota announced that CEO Koji Sato will step down, with CFO Kenta Kon set to take over the role.

Summary

Despite challenges including U.S. tariffs and production disruptions, Toyota's strong quarterly results have led to an improved full-year financial outlook. The upcoming change in executive leadership marks a significant development for the world's largest automaker.

FAQ

Q: Did Toyota raise its annual profit forecast?
A: Yes, Toyota increased its annual operating profit forecast from 3.4 trillion yen to 3.8 trillion yen.

Q: Who is the new CEO of Toyota?
A: CFO Kenta Kon will become the new CEO, succeeding Koji Sato.

Source: Investing.com