Toyota Hits Unusual Headwind, as Its Stake in Suppliers Drags Down Profit Forecast

Toyota cut its full-year profit forecast after a slumping stock market forced it to write down the value of its equity holdings, adding to headwinds for the carmaker facing a shrinking global car market.Third-quarter net income at Asia's biggest carmaker also missed estimates after it lowered the value of the stakes it holds. Toyota raised its full-year vehicle sales forecast while maintaining its operating-profit estimate, signaling the accounting losses aren't affecting its main business operations.The results come at the end of a tumultuous earnings season for global auto giants, with manufacturers getting hit by a shrinking market in China and sputtering demand in the U.S., which hit Toyota's profitability. Its Japan-built cars, including the Lexus, are seeing resilient demand in China as they've become relatively cheaper in the world's largest market, which had its first annual drop in almost three decades.Toyota is one of a few automakers that registered gains in China last year, with its sales rising thanks to new models such as the Izoa crossover. The company is also rolling out an all-new version of the world's top-selling vehicle, the Corolla, to keep up the pressure on larger rival Volkswagen in China and other markets.  Continue reading...

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