Toyota hikes annual profit forecasts despite US tariffs, though new guidance falls short of market expectations as shares decline.
TOKYO: Toyota has raised its full-year profit forecasts despite ongoing pressure from US import tariffs.
The Japanese automaker now expects operating income of ¥3.4 trillion for the year ending March 2026, up from its previous forecast of ¥3.2 trillion.
Net profit is projected to reach ¥2.9 trillion, improved from the earlier estimate of ¥2.7 trillion.
The company also increased its sales forecast to ¥49.0 trillion from ¥48.5 trillion.
Toyota’s chief financial officer Kenta Kon revealed the estimated impact from US tariffs this year would be approximately Â¥1.45 trillion.
“Despite the impact of US tariffs, we have continued to build upon our improvement efforts such as increasing sales volume, improving costs, and expanding value chain profits,” Toyota stated.
The new guidance nevertheless fell short of market expectations, with Bloomberg News reporting consensus forecasts of ¥3.86 trillion for operating income.
Toyota’s share price dropped as much as 5% in Tokyo trading following the announcement.
First-half results showed net income falling 7.0% to ¥1.8 trillion while operating income plunged 18.6% to ¥2.0 trillion.
Sales declined 5.8% to ¥24.6 trillion during the same period.
US tariffs on Japanese cars were reduced to 15% from 27.5% in mid-September following trade negotiations.
Japan’s US-bound car exports slumped 24% year-on-year in value during September.
“We are not taking hasty measures to immediately catch up with this, such as raising vehicle prices in a way that goes against market conditions,” Kon told reporters.
“Instead, we are carefully adjusting prices for each vehicle and each region, taking into account the market and competitive conditions,” he added.
Toyota had previously cut its guidance in August, citing US tariffs and other factors. – AFP
