Toyota kept its annual profit outlook intact despite reporting quarterly results that were dragged down in Japan and China, as the Japanese carmaker showed signs of recovery from domestic scandals and major recalls in the United States.
Its operating profit for the June-September period was ¥1.16 trillion ($7.6 billion), less than the ¥1.44 trillion posted a year earlier and analysts’ average estimate of ¥1.25 trillion, the world’s No. 1 auto manufacturer said in a statement Wednesday. The company maintained its full-year profit guidance of ¥4.3 trillion, helping to lift the share price.
Global car sales have taken a hit due to low demand for new cars, while output cuts were caused by regulatory probes and recalls at home and abroad. Toyota’s sales in Japan fell this year due to domestic recalls of the Prius. Meanwhile, production in China declined as it struggled to keep up in an aggressive price war with BYD and other local players.
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