Slow U.S. Sales Cause Toyota Profits to Fall 20 Percent
May 10, 2017—Toyota forecasts operating profit for the current year to slide for the second straight year due to increased spending to push sales in a slowing U.S. market and the lingering impact from a stronger yen, according to Reuters.
Toyota said on Wednesday that as revenue growth slows, it would have to prioritise areas of investment to maintain profitability, without specifying which areas. It forecasts operating profit falling to $14.06 billion in the year to March, following on the heels of a 30 percent fall in the year just ended, when it took a massive hit from a stronger yen.
"In the sporting world, two years of falling profit would be considered a losing streak, and I hate losing," Toyota President Akio Toyoda said at a results briefing.
To improve profitability, the company aimed to build on the cost reduction efforts enacted last year, Toyoda said, adding it will also focus on selling larger vehicles.
Globally, Toyota and its group companies aim to sell 10.25 million vehicles in the year to March, largely unchanged from last year.
Sales in North America, its single biggest market which accounts for around 28 percent of its global vehicle sales, are seen easing 0.6 percent to 2.82 million.