Toyota is forecast to post a fifth straight quarterly operating profit decline, hit by weaker vehicle sales and rising costs. The world’s biggest automaker is expected to report 1.11 trillion yen ($7.04 billion) in profit for the April-June quarter, down 5% from a year earlier.
Global Sales Decline
Global sales of Toyota and Lexus vehicles fell 3% to just over 2.5 million units in the first quarter, with sharp declines in China and the Middle East outweighing modest growth in the United States. The conflict in the Middle East has pushed up prices for materials, including aluminum and naphtha, and disrupted vehicle shipments to the region.
Toyota has suspended production at three plants in the region through Wednesday and halted output at another plant in central Japan through Friday. Two of the four plants are vehicle assembly sites. The uncertainty was highlighted when supplier Aisin said it could not say when output at a damaged plant near the quake’s epicentre would resume.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
