{"text":[[{"start":7.85,"text":"Toyota has said the Middle East conflict will cost it ¥670bn ($4.2bn) in higher component prices and lost sales, becoming the latest carmaker to lay bare the strains caused by the turmoil."}],[{"start":21.049999999999997,"text":"The world’s biggest carmaker said on Friday that the hit from surging prices for parts such as aluminium and rubber tyres, as well as lost sales in the region, would result in a 22 per cent fall in net profit to ¥3tn. That would be the third consecutive annual drop."}],[{"start":38.199999999999996,"text":"“We do not believe we can fully offset negative ¥670bn Middle East impact,” said Takanori Azuma, accounting group chief officer at Toyota."}],[{"start":48.64999999999999,"text":"The surging costs add to the ¥1.4tn burden from US tariffs that was a factor in pushing down net profit by 19 per cent to ¥3.8tn in the 12 months to March, although the company managed to exceed its previous projection."}],[{"start":63.74999999999999,"text":"Toyota’s estimate highlights the growing fallout of the war on the global motor industry after the big three US carmakers sounded the alarm on a $5bn financial hit from commodities inflation."}],[{"start":76.94999999999999,"text":"Its shares fell 2.1 per cent in Tokyo after the results were released and are down 14.3 per cent this year."}],[{"start":84.54999999999998,"text":"Azuma said the estimates for higher costs assumed that the war would continue until next March. Other Japanese businesses have assumed an earlier end to the conflict in their financial guidance."}],[{"start":96.19999999999999,"text":"New chief executive Kenta Kon has vowed to implement greater cost discipline to restore high levels of profitability and avoid losses even if vehicle sales slow."}],[{"start":106.14999999999999,"text":"Kon has taken charge at Toyota during one of the biggest periods of transformation in its history, after fending off US activist investor Elliott Management to pull off a $38bn buyout of Toyota Industries, its largest subsidiary. "}],[{"start":122.29999999999998,"text":"Toyota sold a record 10.5mn vehicles in the 12 months to March, primarily driven by strong US demand for hybrid vehicles. It expects hybrid sales to exceed 5mn for the first time in this financial year."}],[{"start":136.29999999999998,"text":"However, inflation and trade barriers mean profitability has fallen from a peak of ¥4.9tn in the 2024 financial year. The North America region made an operating loss of almost ¥300bn largely because of the tariffs, the company said."}],[{"start":152.35,"text":"Falling profitability comes at a time of enormous investment to compete against Chinese EV rivals and diversify into robotics, software and other modes of transport."}],[{"start":163.15,"text":"Toyota’s EV sales have been taking off in earnest in recent months as a wider model range coincides with surging petrol prices that have spurred renewed interest in plug-in cars."}],[{"start":174.45000000000002,"text":"The hybrid pioneer expects EV sales to jump 2.5 times in the current financial year to almost 600,000 units, with sales growth coming in China, North America and Europe."}],[{"start":186.70000000000002,"text":"But the Middle East, where Toyota is the market leader, has cast a shadow on its performance after sales fell 32 per cent to 33,919 vehicles in March."}],[{"start":204.8,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1778230020_7642.mp3"}