TOKYO — Toyota, Japan’s leading automaker, reported that its fiscal second-quarter profit fell 19% from the previous year, while raising its full-year profit forecast on Thursday.
Toyota Motor Corp.’s net profit for the July-September period declined to 759.4 billion yen ($4.8 billion), down from 932 billion yen during the same quarter a year earlier.
Quarterly sales rose to 13.4 trillion yen from 12.4 trillion yen, demonstrating resilience despite headwinds from U.S. tariffs, supply disruptions, and increasing raw material costs stemming from the conflict in the Middle East.
The company now projects a full-fiscal-year profit of 3.57 trillion yen through March 2027, up from its earlier forecast of 3.25 trillion yen. Profit for the previous fiscal year totaled 3.8 trillion yen.
Toyota, maker of the Prius hybrid and other models, sold 4.76 million vehicles during the first half of the fiscal year, a slight decrease from 4.78 million in the same period last year.
The automaker expects to sell 9.7 million vehicles globally for the full fiscal year, up from nearly 9.6 million sold in the previous fiscal year.
Like other Japanese exporters, Toyota benefits from a weak yen, which increases the value of its overseas revenue when converted into yen. The U.S. dollar has been trading at approximately 158 Japanese yen, compared with 154 yen a year ago.
Regionally, Toyota’s vehicle sales in China have weakened, partly due to surging gasoline prices. Sales remained strong in the United States and held steady in Japan and Europe, the company’s primary global markets.
In Japan, recent strong sellers included the RAV4, bZ4X, and Land Cruiser FJ sport-utility vehicles. In the United States, the Camry and RAV4 hybrids were particularly popular, according to Toyota. Overall sales across Asia remained flat, though growth was recorded in Indonesia and Thailand.
Toyota officials said the company mitigated the impact of rising material costs by optimizing its global supply chain and maintaining strong sales.
For the first half of the fiscal year, Toyota recorded a 2.2 trillion yen profit, up from nearly 1.8 trillion yen, on sales of 26.96 trillion yen, up from 24.6 trillion yen.
Toyota shares rose in Tokyo trading after the earnings results were announced, climbing to about 3,500 yen from about 3,200 yen.
