Toyota Q4 Profit Plunges 49% as U.S. Tariffs Hit, Forecasts 20% Annual Drop
TM•Toyota’s fourth-quarter operating profit slumped 49% year-on-year due to U.S. tariff costs, even as revenue edged up 1.89% for the quarter ended March. The automaker now forecasts a 20% decline in full-year profit on supply and cost pressures from the Middle East conflict.
1. Fourth-Quarter Earnings Performance
Toyota reported a 49% year-on-year decline in operating profit for the quarter ended March, attributing the slump primarily to increased U.S. import tariffs. Despite the profit drop, revenue rose 1.89% compared with the prior-year period, driven by sustained demand for hybrid and electric vehicles.
2. Full-Year Profit Guidance and Middle East Impact
The company projects a 20% decrease in full-year profit, citing cost increases and supply uncertainties stemming from geopolitical tensions in the Middle East. Management highlighted that elevated logistics expenses and potential parts shortages could further pressure margins through the current fiscal year.
