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US Markets

Toyota Forecasts 22% Profit Drop for Next Fiscal Year on Middle East Headwinds

Toyota Motor (TYO:7203) warned that net income attributable to shareholders would slump 22% to 3 trillion yen in the fiscal year ending March 2027, as the world's largest automaker struggles to absorb shocks from the Middle East conflict.Sales for fiscal year 2027 are predicted to inch up 0.6% to 51 trillion yen, according to Toyota's fiscal year 2026 results published Friday.In a presentation accompanying its results, Toyota said the company may be unable to absorb the newly added impact from the Middle East.Bloomberg noted, citing data from the Japan Automobile Manufacturer's Association, that Japan's domestic carmakers import about 70% of their aluminum materials from the Middle East."[W]e expect operating income to decline for the third consecutive year. We believe this is because our response to changes in the operating environment has been limited to measures that can be implemented in the short term, while progress on the business structure transformation that should be pursued from a mid- to long-term perspective remains only partway complete," Toyota said.Toyota is targeting sales of 10.5 million Toyota and Lexus-branded vehicles in fiscal year 2027, boosted by strong demand at home. The company expects Japan sales to grow 25% next fiscal year, while overseas sales are forecast to decline 3%.Meanwhile, production of these vehicles are predicted to grow to 10 million units from 9.9 million units in fiscal year 2026.For the fiscal year ended March 31, 2026, Toyota's net profit plunged 19% year on year to 3.99 trillion yen, with earnings per share shrinking to 295.25 yen from 359.56 yen.Sales rose 5.5% year on year to 50.69 trillion yen, which it attributed to increased vehicle sales volume and the effects of price revisions that offset the 1.4 trillion yen impact of US tariffs.Operating income, however, tumbled 21.5% year on year to 3.77 trillion yen."Despite the impact of US tariffs, we were able to secure profits in line with our guidance due to increased vehicle sales volumes and the effects of price revisions underpinned by strong product competitiveness, as well as steadily accumulated improvement efforts such as expanded value chain revenues," Toyota said.Consolidated vehicle sales in fiscal year 2026 rose to 9.6 million units from 9.4 million units in the previous year, on the back of strong demand in Japan and North America.Toyota lifted its annual dividend for fiscal year 2026 to 95 yen per share from 90 yen per share a year earlier. It expects to raise its full-year dividend for the next fiscal year by 5 yen to 100 yen per share.

TYO:7203
US Markets

Mitsubishi Motors Swings to Loss in Q3 Fiscal Year

Mitsubishi Motors (TYO:7211) swung to a loss in the third quarter of the 2025-2026 fiscal year as the company felt the impact of the U.S. tariffs on its operations.The loss attributable to owners during the period was 4.49 billion Japanese yen, or 3.35 yen per share, according to the company's earnings published Tuesday.The attributable profit a year earlier was 33.2 billion yen, or 22.8 yen per share.Net sales slid 1% year on year to 1.977 trillion yen from 1.989 trillion yen."Price competition continues to be severe due to the continued aggressive export stance of Chinese manufacturers," the automobile company said during an investor call. "Furthermore, geopolitical and macroeconomic uncertainties remain high, including U.S.-China tensions, policy friction over green products, and concerns about a global economic slowdown."The impact of the tariffs eased at the start of the year as the U.S. made trade deals with China. However, the automobile industry continues to face challenges amid the Middle East conflict.Japanese automakers are forced to trim production and look for alternative supplies as the war in Iran affected aluminum supplies. Carmakers, such as Toyota (TYO:7203) and Denso (TYO:6902), purchased 70% of their aluminum imports from the Middle East, the Japan Times reported April 20, citing data from Japan's top auto lobby.Uncertainty still lingers despite the U.S. and Iran agreeing on a ceasefire. There is still the risk of metal supplies dwindling as the Strait of Hormuz has not yet fully opened.Meanwhile, Mitsubishi forecasted that its attributable profit for the full 2025-2026 fiscal year will jump 76% to 10 billion yen, with a basis earnings per share of 7.47 yen.Net sales for the full fiscal year are expected to grow to 2.900 trillion yen after the introduction of new models pushed sales volume higher, especially in December 2025, the company said.

TYO:6902TYO:7203TYO:7211
Asia

Market Chatter: Japan Buybacks Hit Record 22.32 Trillion Yen in Fiscal 2025

Japan-listed companies' share buybacks reached a record 22.32 trillion yen in fiscal 2025, extending gains for a fifth straight year as companies face growing pressure to improve capital efficiency, Nikkei reported Friday.The total value of announced repurchase programs rose 18% from a year earlier, following an 85% jump in fiscal 2024, according to the report.Recruit Holdings (TYO:6098) launched a buyback of as much as 350 billion yen in March, while Toyota Motor (TYO:7203) repurchased shares tied to the planned privatization of Toyota Industries (TYO:6201), the report said.The buyback surge follows a 2023 push by the Tokyo Stock Exchange for listed companies to improve shareholder returns and capital efficiency, according to the report.The number of companies launching buybacks, however, fell 5% to 1,099 in fiscal 2025, amid concerns over higher repurchase costs and uncertainty tied to U.S. tariffs, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Nikkei 225TYO:6098TYO:6201TYO:7203
Asia

Market Chatter: Toyota Targets India, Middle East, Africa With New Factories

Toyota Motor (TYO:7203) plans to build three assembly plants in India, aiming to raise annual capacity to about 1 million vehicles by the 2030s, Nikkei reported Friday.The facilities, to be set up in Maharashtra, will also serve as export hubs for the Middle East and Africa. The first plant is slated to start operations in 2029, with total investment estimated at around 300 billion yen, according to the report.Toyota intends to produce three-row SUVs and plug-in hybrids, targeting rising demand in emerging markets, the report said.The expansion would bring its India plant count to six and position the country as its fourth-largest production base, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:7203
US Markets

Denso's Fiscal 2026 Profit, Revenue Rise Amid Geopolitical Risks

Denso (TYO:6902) reported higher profit and revenue for the fiscal year of 2026 despite various external factors, but predicted lower earnings in the following year due to the impact of the ongoing Middle East conflict on Japanese carmakers.The profit attributable to owners rose 5.9% year on year to 443.8 billion yen, while revenue climbed 5.3% from a year earlier to 7.540 trillion yen, due to higher vehicle sales and cost recovery from changes to certain product programs, according to the company's Tuesday press release.Operating profit jumped 6.5% year on year to 552.5 billion yen, beating the company's forecast of 500 billion yen."Although our profitability was affected by various factors - including tariff-related costs, higher parts and material prices, and increased investment in our workforce - our team's ongoing business improvements and higher production volumes enabled us to achieve a higher operating profit than last year," Denso's executive vice president and chief financial officer, Yasushi Matsui, said.The automobile maker decided to pay out an annual dividend of 67 yen for the period.The company has been profitable for the period despite withdrawing its proposal to acquire shares in ROHM (TYO:6963) after failing to secure support from ROHM's board and a special committee.The decision was made after a review of the proposal's corporate value, which concluded that "continuing the proposal at this time would not necessarily contribute to the enhancement of its corporate value".The deal could have been worth up to $8.3 billion, according to a Reuters report.However, external factors, including the Middle East war, could have implications for Japan's automobile sector, especially when it comes to aluminum supply.Denso, being the key supplier of Toyota (TYO:7203), is among the affected, as 70% of Japanese carmakers' aluminum imports come from the Middle East, according to a Bloomberg News report on April 20.Denso forecasted that the attributable profit for the fiscal year of 2027 will drop to 382 billion yen, while revenue will rise to 7.670 trillion yen. Operating profit is also expected to fall to 500 billion yen."Our operating profit forecast decreased from the 2026 fiscal year, reflecting strengthened investments aimed at future growth and potential risks associated with a highly uncertain business environment," Matsui said.

TYO:6902TYO:6963TYO:7203
Asia

Toyota's Global Sales Contracts 7.3% in March

Toyota's (TYO:7203) global sales fell in March year on year, mainly due to the impact of the changeover to the all-new RAV4, according to a statement on Monday.Global sales, including its luxury Lexus brand, contracted 7.3% from the same month a ​year earlier to 897,871 vehicles, with sales outside Japan falling 7.2% and domestic sales declining 7.8%.By region, sales in China dropped 8% amid an increasingly competitive market environment.In the U.S., sales declined 8.5%: although demand for HEVs and other models remained solid, the year-on-year decrease was due to a rebound from last year's pre-tariff-driven demand and the impact of the transition to the all-new RAV4.Global production increased by 2.1% in March from a year earlier, up 4.9% overseas, but dropped 3.3% in ​Japan.

TYO:7203
Asia

Japan Stocks Close Lower After Nikkei Briefly Tops 60,000

Japanese equities closed in negative territory on Monday, reversing early gains after the benchmark briefly crossed the 60,000 level, as profit-taking set in following a tech-led rally and easing geopolitical risk tied to the extended Iran-U.S. ceasefire.The Nikkei 225 ended 0.75% lower, or fell 445.63 points, to close at 59,140.23.The decline came as investors reassessed geopolitical risks and tracked softer U.S. futures, despite no further escalation in the Middle East.The Nikkei 225 briefly hit a record 60,013.98, with early gains supported by an extended Iran-U.S. ceasefire. While the ceasefire was prolonged following mediation efforts, tensions persisted as a U.S. naval blockade remained in place and Iran seized two vessels in the Strait of Hormuz.In economic news, Japan's private sector growth slowed to a four-month low in April as a surge in manufacturing-driven by supply concerns-was offset by softer services activity, with the S&P Global Flash Japan PMI Composite Output Index easing to 52.4 from 53.Rising input costs linked to energy and a weak yen pushed prices higher, while business confidence fell to its lowest level since August 2020 amid Middle East uncertainty.On the corporate front, Japan Petroleum Exploration (TYO:1662) rose 9% after outlining plans to boost oil and gas output to 180,000 bpd by 2035 with a 1.16 trillion yen investment, shifting focus toward energy security.Toyota Motor (TYO:7203) fell 2% after a report said it is reviewing a potential data breach involving seconded staff from insurers under Tokio Marine (TYO:8766) and MS&AD Insurance Group (TYO:8725).Note (TYO:5243) dropped 8% after its founder sold 2.8% of outstanding shares in a move aimed at improving stock liquidity.

Nikkei 225TYO:1662TYO:5243TYO:7203TYO:8725TYO:8766
Asia

Market Chatter: Toyota Probes Unauthorized Data Access by Insurer Staff

Toyota Motor (TYO:7203) Toyota Motor (TYO:7203) is reviewing a potential data breach involving seconded staff from major non-life insurers after internal information was accessed without approval, Nikkei reported Thursday.The employees were dispatched from Tokio Marine & Nichido Fire Insurance, part of Tokio Marine (TYO:8766), as well as Mitsui Sumitomo Insurance and Aioi Nissay Dowa Insurance, both under MS&AD Insurance Group (TYO:8725), according to the report.The scope of the information has not been disclosed, though internal documents may be involved. The insurers are assessing how the access occurred and whether data protection or competition rules were breached, the report said.The case follows earlier compliance issues tied to seconded personnel, including data leaks at financial institutions and regulatory action in 2025 citing gaps in oversight and compliance practices across the sector, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:7203TYO:8725TYO:8766
Asia

Market Chatter: Japan Aluminum Shortage Threatens Auto Output

Japan's dependence on Middle Eastern aluminum is disrupting production as the Iran conflict curbs shipments and lifts prices about 13%, Bloomberg News reported Monday.Auto and parts makers, including Toyota Motor (TYO:7203) and Denso (TYO:6902), are exposed, with about 70% of imports sourced from the region. Denso cut output by roughly 20,000 units in March, according to the report.Kato Light Metal said it has inventory through May and will shift to Southeast Asian suppliers as Middle East deliveries halt, the report said.Japan imported about 30% of its aluminum from the region in 2025, leaving it among the most vulnerable to shortages. Damage to refineries and shipping bottlenecks could keep supply tight for months, with broader disruptions likely as inventories run low, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Nikkei 225TYO:6902TYO:7203
Asia

Toyota Industries to Book 4.4 Trillion Yen by Selling Holdings in Toyota Motor, Others via Buybacks

Toyota Industries (TYO:6201) said it will tender all its holdings in several group companies' share buybacks and expects to record about 4.426 triillion yen in profit from the sales, according to a Friday filing on the Tokyo Stock Exchange.The company said it will tender its entire stakes in Toyota Motor (TYO:7203), Denso (TYO:6902), Toyota Tsusho (TYO:8015) and Aisin (TYO:7259), subject to the commencement of buyback offers by some of the companies.Toyota Industries said it plans to sell about 1.19 billion shares in Toyota Motor alone, valued at roughly 3.657 trillion yen based on the tender price. The move is part of a broader transaction aimed at taking the company private, it said.

TYO:6201TYO:6902TYO:7203TYO:7259TYO:8015
Asia

Market Chatter: Isuzu, Toyota Target Light-Duty Fuel Cell Trucks for 2027

Isuzu Motors (TYO:7202) is developing a light-duty fuel cell truck with Toyota Motor (TYO:7203), targeting mass production in fiscal 2027 as limited hydrogen infrastructure favors smaller vehicles, Nikkei reported Thursday.The model will be based on Isuzu's Elf EV and use Toyota's fuel cell system, allowing access to more refueling stations, according to the report.Isuzu has delayed a heavy-duty fuel cell truck being developed with Honda Motor, citing a shortage of refueling stations capable of supporting larger vehicles, the report said.Japan had 148 hydrogen stations as of November 2025, with relatively few operating round the clock, a constraint for logistics use, according to the report.Isuzu said light-duty trucks can use far more stations than heavy-duty models, making them more viable for early rollout, the report said.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:7202TYO:7203
Asia

Market Chatter: Shanghai Backs Foreign Investment Despite Japan-China Tensions

Shanghai officials signaled continued support for foreign businesses, citing Toyota Motor (TYO:7203) and Japan External Trade Organization as part of efforts to attract investment, Nikkei reported Tuesday.The city plans to deepen reforms, expand free trade zones and ease restrictions to encourage foreign companies to grow operations, according to the report.Authorities pointed to progress on a Lexus plant in Shanghai and said nearly 80,000 foreign firms operate in the city, the report said.The push comes despite strained Japan-China ties, with officials aiming to speed up market entry and improve support for overseas investors, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Nikkei 225TYO:7203
Asia

Market Chatter: Toyota Debuts Basketball Robot With AI Training

Toyota Motor (TYO:7203) unveiled its latest artificial intelligence-powered basketball robot, highlighting advances in motion control and machine learning, Nikkei reported Monday.The new model, CUE7, debuted during halftime at a professional game at Toyota Arena Tokyo. Standing 219 centimeters tall, the robot rose from a seated position, dribbled and sank a free throw, drawing applause from about 8,400 spectators, according to the report.CUE7 is Toyota's first new basketball-shooting robot in more than three years. It features lidar sensors in its torso to detect surroundings, a stereo camera in its head and high-performance batteries adapted from race car technology, the report said.Its shooting accuracy is supported by reinforcement learning, allowing the system to improve through repeated trial and error, according to the report.(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

TYO:7203
Asia

Japan Approves Additional Funding for Chipmaker Rapidus

Rapidus has secured additional funding from Japan's New Energy and Industrial Technology Development Organization (NEDO) for its fiscal year 2026 plans to accelerate next-generation 2nm logic semiconductor development.The approval covers two projects: front-end process R&D for 2nm integration and short-TAT manufacturing, and back-end development for chiplet, package design, and manufacturing tech, according to a statement on Sunday.The approved funding totalled 631.5 billion yen, according to a Reuters News report, citing Japan's industry ministry.In fiscal year 2025, Rapidus verified Japan's first 2nm GAA transistor on 300mm wafers and prototyped the industry's first organic RDL interposer using a 600mm square panel.With the new budget, Rapidus will now progress toward its target of starting mass production in 2027.Rapidus was established in August 2022 with the support of eight major Japanese companies: Denso(TYO:6902), Kioxia(TYO:285A), MUFG Bank (TYO:8306), NEC(TYO:6701), NTT (TYO:9432), SoftBank(TYO:9984), Sony (TYO:6758), and Toyota (TYO:7203)

TYO:285ATYO:6701TYO:6758TYO:6902TYO:7203TYO:8306TYO:9432TYO:9984

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