Toyota Global Sales Rise, But Profits Slump 43 Percent
Toyota has announced a fall in global operating profits of 43 percent over the last financial quarter despite seeing a small 2.5 percent increase in sales around the world. The profit hit comes as a result of a weakened Yen against key global curr
Toyota has announced a fall in global operating profits of 43 percent over the last financial quarter despite seeing a small 2.5 percent increase in sales around the world.
The profit hit comes as a result of a weakened Yen against key global currencies, with analysts also identifying Toyota’s reliance on passenger cars in major markets like the US in place of higher-margin pickup truck sales as reasons for the profit slump.
Globally, Toyota produced 4,363,537 vehicles from April until September, an 85,530 unit increase over the same period last year. But that wasn’t enough to hold back a 7.2 percent slide in net revenues, and an operating income loss of 29.5 percent.
Toyota is still firmly in the black however with an operating profit of US$4.69 billion (A$6.03 billion), but tough economic conditions in the US have forced the company to revise its sales targets downward, where hybrid sales have slowed in the face of low fuel prices.
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