Toyota, profits OK thanks to the yen. But the stock market is not enough (-8%)
17% increase in the first quarter. Outlook complicated by a difficult market in China and repeated certification scandals
1' min read
1' min read
Toyota reported a 17% increase in first-quarter profits, thanks to cost reductions and a weaker yen that helped offset declining sales and lower domestic production. Forecasts for the rest of the year are stable.
The world's leading carmaker by sales reported that operating profit for the three months to June was 1.3 trillion yen ($8.70 billion), matching the average of six analysts' estimates compiled by LSEG.
But with the weakest growth in seven quarters, the results disappointed investors who had bet that the carmaker would do even better. Toyota's shares, which fell more than 5% before the results were released, extended their losses and fell 8% to 2,712 yen.
The outlook was complicated by a difficult market in China and the consequences of repeated safety certification scandals.
'Despite the impossibility of maintaining stable production in Japan due to factors such as certification problems and recalls, we achieved an increase in profits thanks to the support of all our stakeholders,' Toyota said in a statement.
