Toyota unit Hino's Q2 profit falls by a fifth on engine data scandal

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It reported 12.3 billion yen ($84.66 million) in operating profit for the three months to end-September, beating an estimate of 1.66 billion yen profit on average surveyed by seven analysts on Refinitiv.

The result compares with 15.6 billion yen profit a year ago.

The truck maker also forecast on Thursday an operating profit of 6 billion yen in the current fiscal year ending in March 2023. Analysts on average expect an operating loss of 16.2 billion yen.

It has been mired in a reputation-tarnishing emissions data scandal this year affecting 640,000 vehicles after it admitted to falsifying data on some engines dating back to 2003.

Hino blamed an inward-looking corporate culture and a management failure to engage sufficiently with workers that led to an environment that put greater priority on achieving schedules and numerical targets than following processes.

The Japanese truckmaker is facing a class-action lawsuit in the United States, in which it and its parent Toyota were accused of historical misconduct. Hino and its subsidiary in Australia are facing another lawsuit from customers who purchased, leased or acquired its trucks.

Hino became a Toyota subsidiary in 2001 and nearly all Hino presidents since have been Toyota employees.

The scandal has led to resignations of three executives and one senior official earlier this month.

($1 = 145.2900 yen)