Investing.com– Toyota Motor Corp clocked slightly weaker-than-expected earnings in the June quarter on Thursday, as the Japanese automaking giant grappled with production disruptions and as cooling global demand also dented sales.
Toyota’s (NYSE:) (TYO:) operating income rose 17% to 1.31 trillion yen ($8.7 billion) in the three months to June 30, slightly missing Bloomberg estimates of 1.32 trillion yen.
The world’s biggest automaker by sales still clocked a 12.2% increase in overall sales to 11.84 trillion yen, as waning demand for electric vehicles boosted sales of its hybrid models- a sector it had pioneered over two decades ago.
But sales momentum was clearly slowing after increased hybrid sales saw the automaker clock record revenues through fiscal 2024. Production disruptions due to an ongoing safety scandal and a mass recall of over 100,000 vehicles due to engine concerns also weighed on the automaker’s bottom line.
Still, the automaker benefited from other cost-cutting measures, while a weak yen also benefited the company through the quarter.
Toyota’s production volumes tumbled for a fifth straight month in June, as a safety tests scandal widened beyond the automaker’s Daihatsu unit after Japanese authorities found irregularities in certifications for certain models. The firm, and several of its peers were ordered to halt shipments of said models.
