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Toyota Cuts Outlook, Sees 20% Profit Drop on Iran War Costs

The first outlook under CEO Kenta Kon signals pressure from rising energy costs, material shortages, shipping delays.

Overview

  • Toyota, which issued its new outlook Friday, projected operating income of ¥3.0 trillion for the year to March 2027, about 20% below last year and well under the ¥4.59 trillion analyst consensus.
  • The company estimated a ¥670 billion hit from the Iran war this year, with about ¥400 billion from pricier materials and fuel and roughly ¥270 billion from lower volumes and logistics delays.
  • Operating profit for the January–March quarter fell to ¥569.4 billion from ¥1.1 trillion a year earlier, and the shares dropped about 2.2% after the release.
  • For the year ended March, sales rose to a record ¥50.68 trillion while net profit slipped to ¥3.85 trillion as U.S. tariffs cut operating income by about ¥1.4 trillion.
  • Toyota expects hybrid sales to top 5 million vehicles this year, yet suppliers report shortages in aluminum and resins as shipping through the Strait of Hormuz is disrupted.