Toyota reported a substantial increase in profitability for the April-June fiscal quarter, with net earnings reaching 1.48 trillion yen, roughly double the 841 billion yen achieved in the same period the previous year. The company’s quarterly sales climbed 10% year-on-year to 13.5 trillion yen, reflecting robust market conditions across major regions.
The automaker benefited significantly from currency movements, as a weaker yen enhanced the value of its overseas earnings. The U.S. dollar strengthened from approximately 145 yen during the prior year’s first quarter to around 160 yen in the current period, with a joint U.S.-Japan market intervention occurring in the fiscal second quarter bringing rates to approximately 158 yen. This favorable exchange dynamic contributed 345 billion yen to Toyota’s quarterly operating profit. For the full fiscal year, the company is calculating an exchange rate of 160 yen per dollar.
While global vehicle sales for the quarter totaled 2.39 million units, slightly down from 2.41 million units the previous year, Toyota expects improved performance across the full fiscal year, projecting sales of 9.7 million vehicles compared to 9.595 million previously. Chief Officer Takanori Azuma highlighted continued strength in hybrid vehicle demand across multiple markets, particularly in the United States where the Camry sedan and RAV4 sport utility vehicle remain popular. The company plans to expand hybrid and battery production through 2030 while reducing costs, with electric vehicle sales also performing well.
The automaker faces near-term headwinds from geopolitical disruptions affecting shipping routes and a significant earthquake in southwestern Japan. A 7.1 magnitude seismic event on July 28 disrupted production at the Tahara facility for five days through the end of the week, followed by a planned summer shutdown extending through the month’s conclusion. Despite these challenges, Toyota projects full-year profit of 3.25 trillion yen, lower than the previous fiscal year’s 3.85 trillion yen, while annual sales are forecast at 54 trillion yen, exceeding the prior year’s 50.7 trillion yen.
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