Toyota Motor Corp yesterday sharply downgraded its earnings forecast for this fiscal year through March, blaming a strong yen and the recent flooding in Thailand.
Japan’s biggest automaker expects to book a net profit of ￥180 billion (US$2.3 billion), down from the ￥390 billion it projected in August. It estimates leaner revenue of ￥18.2 trillion from ￥19 trillion.
Toyota expects to sell 7.38 million vehicles worldwide this year instead of the 7.6 million it predicted four months ago.
The automaker held off from releasing new earnings forecasts when it announced its first-half earnings results last month, citing uncertainties from the Thai floods that disrupted parts supplies.
Toyota’s new forecasts incorporate a ￥120 billion hit on operating profit from ￥190 billion because of the negative impact of foreign exchange rates.
It lowered its foreign exchange assumptions to account for the yen’s appreciation over the past several months. It now expects the yen to average ￥78 to the US dollar this year, from ￥80 to the US dollar in its previous estimate. It assumes ￥109 against the euro, down from ￥116 to the euro.