Fubotv earnings beat by $0.10, revenue topped estimates
Investing.com-- Toyota Motor Corp (TYO:7203) clocked a drop in its operating income for the fiscal first quarter, with the world’s biggest automaker also cutting its annual guidance on expectations of a bigger impact from U.S. trade tariffs.
Toyota’s operating income in the June quarter fell to 1.166 trillion yen ($7.92 billion) from 1.308 trillion yen a year ago, but still came in above Reuters estimates of 902 billion yen.
Net income attributable sank to 841.3 billion yen from 1.333 trillion yen, even as overall sales revenue rose to 12.253 trillion yen from 11.837 trillion yen.
The Japanese automaker cut its operating income guidance for fiscal 2026 to 3.2 trillion yen from 3.8 trillion yen, with Toyota (NYSE:TM) now flagging a bigger, 1.4 trillion yen impact on earnings from U.S. trade tariffs.
U.S. tariffs- which are currently set at 25% on all automobile imports– dented Toyota’s Q1 operating income by 450 billion yen, the automaker said in a statement.
Higher tariffs saw Toyota clock an operating loss in its North American operations. The company has large operations in Mexico and Canada that export to the United States.
But Toyota still maintained its annual vehicle sales forecast at about 11.2 million units, up marginally from the prior year.
Toyota’s softer earnings came even as vehicle sales remained robust, with the company’s margins coming under pressure from higher tariff-related costs. Toyota’s net margin slid to 6.9% in Q1 from 11.3% a year ago.
While Toyota’s Japanese exports to the U.S. are expected to see some relief following a recent trade deal between Tokyo and Washington, it will still face a 12.5% levy on said exports.
Toyota’s exports from Mexico and Canada will continue to face 25% levies in the coming months, the company said.