Toyota Just Posted Record Profit Despite Declining Sales

The automaker banked $8.9 billion from April to June, thanks mostly to a weak yen.

By: Christopher Smith

Aug 1, 2024 at 1:17pm ET

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Toyota isn't without its share of troubles right now. The vehicle certification scandal that erupted last year continues to plague the company. 100,000 Tundras and Lexus LXs are getting new engines due to a manufacturing issue. Lawsuits are percolating over Toyota's hydrogen ambitions. But the money keeps rolling in—$8.9 billion, to be specific.

That's how much profit Toyota bankrolled from April through June, the first quarter of fiscal year 2025 in Japan. It's an increase of 1.7 percent for the same stretch last year, and a record for the company. Operating income was $8.9 billion, a 17-percent increase, while revenue was up 12 percent to $78.7 billion—also first-quarter records.

Meanwhile, Toyota's global sales are down 1.9 percent for the period. Sales were especially down in Japan, dropping 14 percent thanks largely to the aforementioned vehicle certification problems that forced a stop-sale on several models. If it wasn't for North America—where sales are up 14.3 percent through the first half of the year—the company's financials might look different.

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How does a company post record profits with declining overall sales? Toyota points to a depreciation of the Japanese yen as the primary reason, suggesting the numbers could bounce back around if the yen rebounds, which it's doing now. Q2 numbers will also be influenced by better sales in Japan as the stop-sale lifts on the Yaris Cross and two Corolla trims affected by the scandal.

Meanwhile in the US, Toyota is having a field day with every model save for the Highlander and Tacoma, which are down over 40 percent through the first half of the year. The new Crown is off to a good start with 14,032 sales through June, and the Camry continues to be a sedan superstar with 155,242 units sold, an increase of 3 percent. SUVs are still the breadwinners though (Highlander being an exception) with everything up at least 30 percent. The RAV4, Toyota's best-selling vehicle, already has 248,295 sales with half the year still to go.