Toyota's profit increases 17% to $8.70 bn in Q1 but shares tumble

Toyota Motor posted a 17 per cent increase in first-quarter profit on Thursday, as cost-cutting and a weaker yen helped offset lower sales and a decline in production at home. The world's top-selling automaker said operating profit for the three months through June totalled 1.3 trillion yen ($8.70 billion), matching the average of six analyst estimates compiled by LSEG. But with that growth being the weakest in seven quarters, the results disappointed investors who had been betting the automaker would knock the lights out. Shares in Toyota, which declined more than 5 per cent before earnings were released, extended losses and were down 8 per cent at 2,712 yen as of 0529 GMT. Toyota has been on a record profit run that has boosted its share price. But its outlook has been complicated by a tough market in China and the fall-out from a certification scandal. "Despite the inability to maintain stable production in Japan due to factors such as certification issues and recalls, we achieved an increase in profit thanks to the support of all our stakeholders," Toyota said in a statement.