Toyota’s Net Profit Plummets 81%

February 06, 2019 at 1:32 AM

Toyota Motor Corp.’s net profit for the fiscal third quarter ended Dec. 31 plunged 81% to 181 billion yen ($1.6 billion), largely because last year’s results were boosted by a one-time tax cut in the U.S.

Operating income for the period advanced by a microscopic 2.5 billion yen ($23 million) to 676 billion yen ($6.1 billion).

Toyota’s unit sales (including Daihatsu minicars and Hino commercial trucks) were flat at 2.28 million vehicles. But revenue grew 3% to 7.8 trillion yen ($71.1 billion).

By major sales regions, demand in October-December rose in Japan (+2% to 565,000 units) and Asia (+15% to 464,000). But volumes fell in North America (-7% to 680,000 units), Europe (-2% to 232,000) and Central/South America (-3% to 114,000).

Toyota, citing cooling markets in China and the U.S., slashed its forecast for full fiscal year net profit. The carmaker now expects to net 1.9 trillion yen ($17.3 billion), compared with the 2.3 trillion yen it predicted in November.