Toyota Forecasts Surprise Profit Drop on Iran; Shares Fall

Toyota Motor Corp. forecast an abrupt drop in operating profit as the world’s largest carmaker braces for higher raw material costs on disruptions stemming from the conflict in Iran.

The stock reversed gains and fell as much as 3.5% on Friday after the Japanese company issued an outlook for ¥3 trillion ($19.1 billion) in operating income for the fiscal year ending March 2027. That was far short of the average consensus estimate for ¥4.6 trillion, as well as ¥3.8 trillion posted in the prior period.