Toyota Motor posts nearly 28% drop in third-quarter operating profit, missing estimates

Japanese automaker Toyota Motor on Wednesday reported a second consecutive fall in quarterly profit, as it navigates competition in China and a market shift toward electric vehicles. 

Here are Toyota’s results compared with estimates from analysts, compiled by LSEG.

• Revenue: 12.39 trillion yen vs. 12.1 trillion yen
• Operating profit: 1.22 trillion yen vs. 1.39 trillion yen

The world’s largest automaker by sales volume saw a nearly 28% year-on-year drop in operating profit during the quarter ended December.

The results mark Toyota’s second consecutive year over year decline in operating profit after the company saw profit fall 20% year over year in the previous quarter.

Net income attributable to the company, however, jumped to 2.19 trillion yen from 1.36 trillion yen a year ago.

The automaker’s consolidated vehicle sales for its financial third-quarter dropped to 2.44 million from 2.55 million units a year ago.

Still, Toyota maintained its full-year dividend forecast at 90 yen, compared with a dividend payout of 75 yen a year earlier.

Toyota shares rose over 1% in Tokyo on Wednesday morning.

Toyota’s operating profit jump had jumped in the first quarter, year over year, amid a sales shift to relatively high-margin hybrids in the U.S. and the yen’s slide against the U.S. dollars. 

However, lower sales and output volumes have indicated a deceleration for the Japanese carmaker.

Toyota has been slower than competitors at embracing fully battery-powered electric vehicles, and instead has focused on hybrids, according to local reports. 

The company plans to build a new factory to produce EVs in China, according to a Reuters report.