Toyota reports its first quarterly profit drop in two years due to production challenges and declining sales in North America and Japan

Toyota Motor Corp. kept its annual profit outlook intact despite reporting quarterly results that were dragged down in Japan and China, as the carmaker showed signs of recovery from domestic scandals and major recalls in the US.

STORY: Japanese automakers Toyota and Honda both reported slipping quarterly profits Wednesday.Both companies cited falling sales and competition from China.Toyota's profits from July to September this year were 20% lower than the same time last year,