Weaker overseas sales, higher supply chain costs and earthquake disruptions in Japan are clouding the automaker's outlook as investors watch for changes to its full-year forecast.
Toyota is expected to report a fifth straight quarterly operating profit decline on Tuesday, with the April-June figure seen at 1.11 trillion yen ($7.04 billion), down 5% from a year earlier, according to the median estimate of eight analysts surveyed by LSEG. Weak vehicle sales, higher supply chain costs tied partly to the conflict in the Middle East, and disruption from last week's earthquake in southern Japan are all weighing on the outlook. Global Toyota and Lexus sales fell 3% to just over 2.5 million units in the first quarter, led by sharp declines in China and the Middle East. Investors are also watching the production halt at four domestic plants after the quake, alongside any change to Toyota's 3 trillion yen full-year operating profit forecast.