Toyota Faces Fifth Straight Quarterly Profit Decline

Financial analysts project that Toyota Motor Corporation will report its fifth consecutive quarterly operating profit decline for the April-June period. Median estimates from LSEG analysts forecast a profit of 1.11 trillion yen, representing a 5% decrease year-on-year.

The downturn follows a 3% drop in global sales of Toyota and Lexus vehicles. The company experienced significant losses in China, where sales fell 28%, and the Middle East, where they dropped by one-third. Other declines occurred in Oceania and Latin America. Contributing factors include rising supply chain costs tied to Middle East conflicts and a sales transition for the RAV4 in the United States.

Operational challenges intensified last week following a deadly earthquake on Japan's Kyushu island. The disaster forced the automaker to halt production at four domestic plants and disrupted critical supplier operations. Aisin, a key supplier, has not yet confirmed a production restart date for a facility damaged by the quake.