We recently found out that Toyota is no longer the world’s largest automaker, and now there’s more bad news. According to financial results released today, Toyota’s profits dropped 23 percent last quarter amid slowing sales.
Toyota recorded a profit of 486.5 billion yen ($4.3 billion) from October-December 2016, decreasing from 627.9 billion yen during the same time period in 2015. Sales were down 3.5 percent to 7.1 trillion yen ($63 billion).
Unfavorable exchange rates also played a role in the results. The U.S. dollar was trading at 102 yen in September but ended the year at 117 yen.
During the nine-month period ending December 31, Toyota saw its net income decline from 1.89 trillion yen to 1.43 trillion yen. Sales during that entire time period, however, increased in North America, Europe, and Asia, including its home country of Japan.
Toyota forecasts its profits for the full fiscal year ending March 2017 will hit 1.7 trillion yen ($15 billion). Although the company expects exchange rates to improve, its estimate is well below the 2.3 trillion yen Toyota earned in the last fiscal year.
Volkswagen was the world’s largest automaker last calendar year, selling 10.31 million vehicles compared to Toyota’s 10.18 million. Previously, Toyota had held the crown for seven of the last eight years. Much of VW’s success was attributed to China, where the automaker moved 3.98 million vehicles.
Source: The Detroit News, Toyota
The post Toyota’s Profits Dropped 23 Percent Last Quarter Amid Slow Sales appeared first on Motor Trend.
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