Toyota earnings fall for a second consecutive quarter as U.S. tariffs hit exports | USAEMALL.com

Toyota Motor on Wednesday raised its operating profit forecast for its financial year ending in March, while flagging a 1.45 trillion yen hit from U.S. tariffs.

The company, which revised its operating profit outlook to 3.4 trillion yen from 3.2 trillion yen forecast earlier, missed profit estimates for the quarter ended September. 

“Despite the impact of U.S. tariffs, strong demand supported by the competitiveness of our products has led to increased sales volumes mainly in Japan and North America and has expanded value chain profits,” Toyota said in its earnings report.

Here are Toyota’s September quarter results compared with mean estimates from LSEG:

• Revenue: 12.38 trillion yen (about $81 billion) vs. 12.18 trillion yen
• Operating profit: 834 billion yen vs. 863.1 billion yen

The world’s largest carmaker by sales volume reported a nearly 28% quarterly drop in profit, year on year, while revenue increased over 8%.

The company released 6-month results — from April to September — and the quarterly numbers have been calculated by CNBC, based on company statement and LSEG data.

The decline in the September quarter’s operating profit represents the second straight drop since the U.S. introduced “reciprocal” tariffs in April. Tokyo in July clinched a trade deal with Washington, bringing down tariffs on its exports to the U.S. to 15% from the 25% initially proposed by President Donald Trump. The 15% duties took effect on Aug. 7.

Japanese shipments of automobiles to the U.S. have seen a sharp decline in terms of value, with exports dropping 24.2% in September, slightly less compared to the 28.4% drop in August.

By unit sales, Toyota has continued to show strong global demand. The company recently reported that vehicle sales, including its luxury brand Lexus, reached 5.3 million in the nine months to September, a 4.7% increase year-over-year.

The company said it would continue to focus on increasing sales volume, cutting costs, and expanding profits.