Japanese automaker Toyota Motor Corp. (TM), which has fallen from grace with its recall of millions of car due to gas pedal problems, on Thursday reported a $1.7 million profit for the third quarter, helped by higher sales and lower costs.
Furthermore, the company raised its annual forecast for the year ending on March 31, citing increased sales volume and mix, as well as overall cost reduction efforts.
For the current fiscal year, the company now expects consolidated net income attributable to the company of 80 billion yen, compared to previous loss forecast of 200 billion yen. The automaker also raised its full-year consolidated net revenues outlook to 18.5 trillion yen from prior guidance of 18.0 trillion yen.
Toyota reported third-quarter net income of 153.2 billion yen, compared to a loss of 164.7 billion yen in the year-ago quarter. Sales totaled 5.3 trillion yen, up 10.2% from 4.8 trillion yen in the same period last fiscal year.
The company achieved year-on-year improvement in operating income in all regions for the third quarter. In Japan, operating income increased by 198.1 billion yen to 33.9 billion yen, compared to a loss of 164.2 billion yen last year.
In North America, operating income increased by 327.1 billion yen to 79.7 billion yen. Operating income, excluding the impact of valuation gains/losses on interest rate swaps, increased to 69.7 billion yen from a loss of 119.4 billion yen last year.
The company's peer Honda Motor Co. Ltd. (HMC) Wednesday reported a more than six-fold rise in its third-quarter profit. Honda also lifted its earnings and revenue outlook for the fiscal year ending March.
Toyota has been going through a tough time, recalling 7 million vehicles worldwide over concerns that sticky gas pedals could endanger drivers and passengers in eight Toyota models.
Toyota estimated of costs of the global recall at up to 180 billion yen, or $2 billion, with 100 billion yen, or $1.1 billion, for repairs. The company expects up to $880 million in lost sales.
In January, Toyota's sales dropped 8.7% to 98,796 vehicles.
Adding to the company's woes, fresh reports have emerged finding fault with the brake system of Toyota's flagship model Prius. Early today, the company said it received reports that some customers of its 2010 model year Prius vehicles experienced inconsistent brake feel when the vehicle is driven over potholes, bumps or slippery road surfaces.
The company said it is currently in the process of "confirming these reports and investigating the vehicle driving conditions under which the reported phenomenon occurs."
Toyota said it would be premature to comment until the investigation has been completed.
TM closed Wednesday's regular trade at $73.49, down $4.69 or 6.00%, on 18.58 million shares, compared to the three-month average volume of 917,529 shares. In the extended trade, the stock slid further to trade at $71.66.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.