Toyota reports profit plunge due to certification scandal

Japanese automaker Toyota Motor Corp. said Wednesday its net profit for the first half of the fiscal year (April to September 2024) fell 26.4 percent to 1.91 trillion yen (about 12.3 billion U.S. dollars), reported Xinhua.

The decline was mainly attributed to issues like certification irregularities that affected sales in Japan, along with decreased sales in North America due to recalls of key models.

Additionally, investments in growth areas such as electrification added to the costs.

Despite the profit drop, operating revenue increased 5.9 percent year-on-year to 23.28 trillion yen, while operating profit, indicating core earnings, fell 3.7 percent to 2.46 trillion yen.

For the full-year outlook, Toyota maintained its earnings forecast, projecting net profit to fall 27.8 percent from the previous year to 3.57 trillion yen while estimating sales to grow 2.0 percent to 46 trillion yen.