Toyota Faces Profit Hit and Leadership Shake‑Up

Toyota announced that its quarterly earnings fell 43 percent, a sharp drop that reflects the pressure from higher material costs and U. S. tariffs on imported parts. The company also revealed that its long‑time finance chief, Kenta Kon, will step into the CEO and president roles in April. Kon has a broad background that includes work on automated driving systems, and Toyota said he was chosen for his track record of boosting profitability. Chief executive Koji Sato will stay on as vice chairman and take a prominent spot in the Japan Automobile Manufacturers Association. He also holds a senior role at Keidanren, the Japanese business federation, and said that stepping down from the presidency would let him focus on industry‑wide change.Toyota’s operating profit for the last quarter was 1. 25 trillion yen, down from 2. 19 trillion yen a year earlier. For the first nine months of the year, profit slipped 26 percent to 3. 03 trillion yen, even though sales rose nearly 7 percent to 38 trillion yen. Global vehicle deliveries grew to about 7. 3 million units, up from roughly 7 million a year before. Despite the earnings dip, Toyota maintained its forecast for the full fiscal year at 3. 57 trillion yen, a 25 percent decline from the previous year. Shares rose about 2 percent after the announcement, indicating investor confidence in the new leadership plan. Toyota’s statement emphasized that turning into a mobility company will require stronger industry collaboration and new partnerships beyond the automotive sector.