Toyota Motor Profit outperforms estimates – but decreases by 11 % with the US tariff star-news.press/wp

Toyota is an engine On Thursday, the annual operating profit forecast was reduced as the world’s largest car company through sales sizes with US car tariffs.

Here are the results of Toyota compared to the middle estimates of LSEG:

• Revenue: 12.25 trillion Japanese yen ($ 83.4 billion) compared to 12.19 trillion yen
• Operating profit: 1.17 trillion yen for 881.41 billion yen

While its results in the quarter of June topped its estimates, operating profits decreased by 11 % on an annual basisand With the company strengthening 450 billion yen in losses to the United States. The net income that is attributed to the company decreased by 37 % to 841.3 billion yen.

Toyota reviewed the entire public employment income expectations by 600 billion yen to 3.2 trillion yen in its financial year that ends in March 2026.

“Because of the impact of American definitions and other factors, the actual results showed low operating income, and expectations were revised down,” the company said in the issuance of profits.

In its country of origin in Japan, the company said that the operating income was weighed due to the effect of exchange rate fluctuations and increased expenses.

While the profit decreased, Toyota witnessed a strong global demand and the auto industry last week The record was reported all over the world In the first half of the year.

“Despite a difficult external environment, we continued to make comprehensive investments, as well as improvements such as increasing unit sales, reducing costs, and expanding value chain profits, and thus reducing negative effects,” the company said.

Japanese car makers by US President Donald Trump’s tariff were exposed to imported vehicles, which came into effect in April. Their peers like Honda also reported a decrease in profit, as they reduced prices in order to maintain the market share in the United States

“The Japanese auto manufacturers faced great pressure in profit earlier this year due to the high American import tariffs,” CNBC.

“Although the volumes export to the United States hold on, it was necessary to absorb the high costs of customs tariffs, which is the streated margins,” he added.

In June, the value of the export of Japanese cars to the United States decreased by 25.3 % on an annual basis, although car export volumes to the United States increased by 4.6 % in the same period. Data from the Japanese Ministry of Commerce.

However, Trump announced a new trade deal with Tokyo last month with the definitions expected to drop to 15 %, although the timeline of change is still unclear.

In light of the Japan and the United States Convention, Toyota said it expects a complete financial impact of 1.4 trillion yen on profits.

“Car manufacturers are still facing margin pressure from strong yen and the burdens of the continuous cost of previous definitions. However, the rate of 15 %, in addition to localization and pricing adjustments, must gradually settle on profits,” said Mukherji.

“In the long run, Japanese brands may gain an advantage over the competitors of the NAFTA region, which still faces a higher tariff, supporting slow but fixed recovery,” he added. The free trade agreement in NAFTA or North America includes Canada, Mexico and the United States

Car exports to the United States are the cornerstone of the Japanese economy, as it constitutes about 24 % of global car shipments in 2024, according to what it said. Japanese customs data.