Toyota faces fifth quarterly profit drop amid supply chain and quake woes

The projected 5% year-on-year drop stems from a 3% dip in global sales, totaling 2.5 million units. While the U.S. market showed modest resilience, sharp contractions in China and the Middle East—down 28% and 33% respectively—strained the bottom line. Analysts point to aggressive competition from Chinese manufacturers in Oceania and Latin America, alongside rising costs for raw materials like aluminum, as significant headwinds.

Operational instability currently looms over the company's domestic manufacturing. The recent earthquake in Kyushu forced Toyota to halt production at four plants, with supplier Aisin unable to confirm when output at its damaged facility near the epicenter will resume. Investors are now looking for clarity on whether these disruptions and the broader supply chain volatility will force a revision of the company’s 3 trillion yen annual profit forecast. The transition to the redesigned RAV4 remains a focal point for shareholders seeking signs of a rebound in volume.