Toyota shares dropped 3 percent on Thursday after the Japanese carmaker reported a fall in operating profit for the quarter ended June, which fell short of expectations.
Operating profit plunged 42 percent, to ¥578.66 billion ($4.3 billion) in the quarter ended June, compared with ¥997.4 billion ($7.5 billion) in the year-ago period, Toyota said in its quarterly financial statement on Thursday.
The scale of the earnings hit was far beyond expectations—analysts polled by Refinitiv had estimated a 15 percent drop—and appeared to catch investors by surprise, resulting in the decline of the carmaker’s stock price.
Toyota Motor Corp.’s net income decreased by 18 percent, to ¥736.8 billion ($5.5 billion) from ¥897.8 billion ($6.7 billion) the previous year. The company’s revenue rose 7.0 percent, to ¥8.49 trillion ($62.27 billion)….