Toyota forecasts a 22% decline in net profit for the new fiscal year

```htmlGolden Ten Data, May 8｜Toyota Motor Corporation of Japan announced on May 8 that, due to ongoing tensions in the Middle East and rising raw material prices, its net profit for the new fiscal year (April 2026 to March 2027) is expected to decline by 22% compared to the previous fiscal year. Toyota released its financial report on the same day, stating that, based on a USD/JPY exchange rate of 1 to 150, factors related to the Middle East will result in a total decrease of 670 billion yen in operating profit. Affected by this, the company’s net profit in the new fiscal year is projected to drop to 3 trillion yen. The financial report shows that U.S. tariff policies have imposed a significant burden on Toyota. Despite multiple countermeasures, the company has still struggled to offset the negative impact of U.S. tariffs. In the previous fiscal year, tariffs and other factors led to a 21.5% decrease in Toyota’s operating profit. Toyota’s Vice President and Chief Financial Officer Yoichi Miyazaki stated that the new fiscal year will mark the third consecutive year of profit declines for the company. Amid a rapidly changing operating environment, the company has mainly relied on short-term measures, with insufficient progress in promoting mid- and long-term business structure reforms.```