TOKYO -- Toyota Motor Corp. said operating profit in the latest quarter fell 15 percent to 642 billion yen ($6.33 billion) as a strong yen weighed on earnings.
Net income in the three months through June dropped to 552.47 billion yen, the automaker said Thursday. Revenue fell to 6.59 trillion yen.
The yen strengthened about 11 percent against the dollar in the quarter compared with the year-earlier period, making Toyota’s exports less competitive and cutting the value of repatriated earnings.
“Things are moving so rapidly every day,” Tetsuya Otake, Toyota's managing officer, said at a press briefing Thursday, lamenting big foreign exchange rate swings.
Production disruptions have added to Toyota’s challenges. The company said it lost output of about 80,000 vehicles due to earthquakes in Kumamoto prefecture in April, Japan’s most devastating since March 2011. Factories in Japan had already been trying to recover from having to shut down for a week in February due to an explosion and fire at a steel-making affiliate.
Toyota is responding by cutting costs. After Britain voted to leave the European Union in June and investors sought refuge in the yen as a haven currency, Toyota deactivated elevators and bathroom hand-driers and cut back on air conditioning at its offices in Japan.
The automaker said that it would be more aggressive in cutting labor costs and other expenses to offset the bigger currency impact.