Toyota(TM) CNBC·2024-11-06 05:27Core Insights - Toyota reported its first quarterly operating profit drop in nearly two years, indicating challenges in adapting to the electric vehicle market shift [1][2] - The company experienced a 20% year-on-year decline in operating profit, maintaining a full-year operating profit forecast of 4.3 trillion yen [3] Financial Performance - Revenue for the quarter was 11.44 trillion yen, slightly above the analyst estimate of 11.41 trillion yen [2] - Operating profit was reported at 1.16 trillion yen, below the expected 1.24 trillion yen [2] Industry Context - Toyota has been slower to adopt fully battery-powered electric vehicles, with concerns raised by chairman Akio Toyoda about potential job losses in the automotive industry due to a shift to electric vehicles [2][3] - Toyoda highlighted that 5.5 million people are involved in the automotive industry in Japan, many of whom have long-term roles related to engine work [3] Recalls and Market Impact - The company faced multiple vehicle recalls this year, including a recent recall of 42,000 vehicles due to power brake assist issues [4] - In June, Toyota lost over $15 billion in market value following the discovery of false data used for vehicle certification by Japanese automakers, including Toyota [5]