Toyota has reported a dramatic drop in quarterly profits, missing forecasts by a wide margin as ongoing U.S. tariffs have slashed profits by nearly 49%. Concurrently, the company projects a $4.3 billion hit from the impact of the Iran war, highlighting a forecasted 22% decline in annual profit. Despite achieving record sales exceeding 50 trillion yen, Toyota warns of challenging times ahead, anticipating further implications from geopolitical tensions and escalating costs. The new CEO, Kenta Kon, is expected to expedite reforms in response to these challenges, as the company braces for its third consecutive annual profit decline.