Toyota raises profit forecast by 9 per cent despite quarterly earnings dip

Toyota Motor Corporation has raised its full-year operating profit projection by 9 per cent because it shows strong faith in its capability to deal with possible US trade tariffs and economic risks. Toyota Motor Corporation increased the operating profit projection for the fiscal year to 4.7 trillion yen or 30.7 billion dollars until March 2025 while initially estimating 4.3 trillion yen.  

The earnings strategy of Toyota along with controlled incentives and price adjustments and stabilised production drove the upward revision. Further income advancements will result from the company’s prediction of a weakening Japanese currency.  

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The most recent quarterly financial performance by Toyota did not meet analysts' projection levels. During the October to December period Toyota posted a 28 percent decrease in operating profit that reached 1.22 trillion yen. The operational earnings of 1.22 trillion yen fell short of analyst forecasts totaling 1.42 trillion yen during the LSEG poll marking two consecutive decreasing quarters.  

Taxpayer demand for Toyota hybrid models remains robust in major markets including the United States and other worldwide areas. However, regional performance varied significantly.  

Operating income for North America as Toyota's main market declined by 63 percent throughout the nine months of the fiscal year due to falling sales together with rising personnel expenditures.  

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Operations in China showed reduced business performance since Toyota needed higher marketing spending to combat rising competition from Chinese brands.  

Toyota implements a strategic move to strengthen its electric vehicle manufacturing operations during the upcoming years. The automaker established their Shanghai subsidiary dedicated to developing electric vehicles and batteries which specifically operates under the Lexus premium brand. The manufacturing operation starts in 2027 while production begins with 100,000 units annually.  

Toyota’s global leadership remains intact. For the fifth year in a row Toyota maintained its position as the most successful car manufacturer globally by selling 10.8 million vehicles during 2024.  

Following the earnings announcement, Toyota’s stock fluctuated, initially dipping before rebounding. As of 0521 GMT, shares were up 4.7 percent at 3,008 yen, reflecting investor confidence in the company’s long-term strategy.