TOKYO (Reuters) – Toyota Motor posted its first quarterly profit decline in two years on Wednesday, as slowing sales and production volumes halted the Japanese automaker's recent record streak.
Toyota (NYSE:) operating profit for the three months to the end of September totaled 1.2 trillion yen ($7.81 billion), down 20% from 1.4 trillion yen a year earlier and largely in line with nine analysts' average profit forecast of 1.2 trillion yen. surveyed by LSEG.
The world's best-selling automaker maintained its profit forecast for this year at 4.3 trillion yen. In recent quarters, the company has generated huge profits thanks to demand for its hybrid cars in the United States and other major markets.
This comes after recent sales and production figures showed a slight slowdown for Toyota, due in part to stiff competition from Chinese brands in China and a halt in production of two models in the United States that has now been resolved.
Operating income in North America, including Toyota's primary market in the United States, was hit by declining sales volumes and rising labor costs.
Operating income in China fell during the first half of the financial year mainly due to higher marketing costs as the company sought to overcome stiff price competition from Chinese brands.
($1 = 153.7100 yen)