Toyota Motor Corp. just confirmed Monday that its profit decreased 23 percent in the October-December quarter from a year prior as its sales decreased and a stronger yen squeezed its overseas profit. The automaker, which recently surrendered the crown as the world's greatest automaker to German competitor Volkswagen, announced its fiscal third quarter profit was $4.3 billion, down from 627.9 billion yen way back in 2015.
Japan's biggest automaker anticipates that profit will tumble to $15.1 billion for the fiscal year finishing one month from now, about a quarter less than the previous annual period. The figure given Monday, still not as much as expert's consensus, reflects challenges including a more stronger yen and never ending U.S. interest for passenger vehicles such as the Camry.
Trump's resistance to imported vehicles risks makes the company President Akio Toyoda's job considerably more difficult. Toyota has put about $22 billion in the U.S. also, would likely need more than $1 billion and quite a long while to add to the six plants it's already built in politically conservative U.S. states.
Meanwhile, Takaki Nakanishi, the top-ranked auto analyst for six straight years through 2009 in rankings by Nikkei Veritas, said that the company still imports a noteworthy proportion of high-value pieces such as engines and transmissions. He added, "Japan's auto industry has not sufficiently localized operations in the U.S., its largest sales destination market."
During the nine-month time frame ending December 31, the automaker noticed its net income decrease from 1.89 trillion yen to 1.43 trillion yen. However, company's sales during that entire time increased in North America, Asia, Europe and of course, Japan.
Furthermore, the Japan automaker also predicted its profits for the full fiscal year finishing March 2017 will hit $15 billion. Despite the fact that the company anticipates that the exchange rates will improve, its rate is well below the 2.3 trillion yen that the automaker earned in the last fiscal year.
Volkswagen recently was proclaimed as the world's largest automaker last calendar year, will sales reaching 10.31 million vehicles compared with Toyota's 10.18 million. Toyota previously had held the crown for seven of the last eight years. A lot of VW's success was credited to China, where the automaker transferred 3.98 million vehicles.