Toyota Industries reported a second-quarter operating loss of ¥14.9 billion, weighed down by a ¥45 billion ($299.5 million) settlement tied to its forklift engine certification issue. The fallout from the scandal, which forced the company to halt certain engine shipments and support affected customers, also led to a sharp cut in full-year guidance.
The company now expects operating profit of ¥100 billion for the year, down from a prior forecast of ¥180 billion. Of the revision, ¥73.7 billion reflects costs linked to the certification issue, including customer compensation and compliance measures. Toyota Industries also sharply increased its estimate for U.S. tariff-related expenses, lifting the impact from ¥3.5 billion to ¥25 billion. Management said a weaker yen, typically a tailwind for exporters, is not enough to offset the mounting headwinds.
Operational forecasts have been revised as well, with full-year forklift sales volume reduced from 291,000 to 279,000 units. Shipment expectations for other business lines were trimmed, including a cut in car air-conditioning compressor shipments from 31 million to 30 million units. The company continues to assess the longer-term business impact, with near-term profitability pressured by regulatory and cost challenges.
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