By Kosaku Narioka


Toyota Motor reported stronger second-quarter net profit and raised its sales and earnings guidance, even as U.S. tariffs continued to pose challenges.

The Japanese carmaker said Wednesday that net profit rose 62% from a year earlier to 932.0 billion yen, equivalent to $6.07 billion, for the three months ended September. That beat the estimate of Y801.13 billion in a poll of analysts by data provider Quick. Second-quarter revenue grew 8.2% from a year earlier to Y12.377 trillion.

For the year ending March, it forecast revenue to increase 2.0% to Y49.000 trillion and net profit to drop 38.5% to Y2.930 trillion. The company previously projected revenue of Y48.5 trillion and net profit of Y2.660 trillion. Toyota said it expects U.S. tariffs to drag operating profit by Y1.45 trillion this fiscal year, compared with Y1.4 trillion forecast previously.

The carmaker now expects group vehicle sales to rise 2.6% to 11.30 million units. It previously expected 11.20 million units.

The U.S. imposed a 25% levy on finished foreign-made cars in April, in addition to an existing 2.5% duty. Following a trade deal with Tokyo, the tariff on automobiles from Japan was lowered to 15%.

Toyota manufactured 2.4 million vehicles in Japan during the first nine months of the year, exporting about 448,000 to the U.S.

While addressing U.S. military personnel in Japan last week, President Trump said the Japanese prime minister told him that Toyota would be investing some $10 billion in U.S. auto plants. "Go out and buy a Toyota," Trump told the assembled troops.

Hiroyuki Ueda, Toyota's chief officer for public and external affairs, has said that the company will continue to invest in the U.S. but hasn't made an explicit commitment to invest $10 billion. That was the sum Toyota invested during Trump's first term, he said.

Concerns about the impact of U.S. tariffs on Toyota's earnings have weighed on its stock. The automaker's shares have risen 0.3% this year through Tuesday, underperforming the benchmark Nikkei Stock Average's 29% ascent.

The yen's sharp weakening in recent years has helped boost earnings for Japanese exporters, including Toyota, as it makes exports more competitive overseas and increases the value of profits earned abroad in yen terms. The yen depreciated about 25% against the dollar over the past four years.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

11-05-25 0128ET