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Toyota Motor declared 39 percent decline in operating profit for first quarters end June, compared to the earlier fiscal year. According to company, the decreasing sales in Europe and US, higher buying prices of the basic materials and the strong yen, affected the profits.

Toyota registered operating earnings of USD 3.8 Billion compared to USD 6.17 Billion at previous year.

The environment surrounding our business has taken a sharp turn for the worse, leading to a very tough first quarter. It will be crucial for us to act quickly and flexibly to overcome this.

- Mr. Mitsuo Kinoshita (Executive Vice President) told.

Cumulative universal sales for a 1st quarter increased to 2.186 million units, up from a 2.162 million units during the similar period previous year, led by the brisk sales in the Asia and Middle East.

Toyota expects to balance the additional cost of the raw materials by lowering prices. They have also brought down the sales estimation for each region they operates in. Sales estimation in United States for the year is 2.63 million units down from expected 2.77 million, while forecast for the home market Japan puts at 2.17 million units down from the former projection of 2.2 million units.

Sales forecast for Europe sets at 1.29 million down from the prior 1.39 million units while forecast for Asian states is currently 1.06 million units from prior 1.10 million units.