Toyota to revise dollar forecast to 80 yen for 2nd half, takes earnings hit


AFP

TOKYO–Toyota will revise its dollar forecast for the second half of the current business year to March to 80 yen, which will mean a US$1.85 billion hit to its earnings, a report said Monday. Toyota, which announces April-September earnings on Nov. 5, will revise its currency forecast from 90 yen to 80 yen to the dollar, reflecting the Japanese unit’s relentless strength, the Yomiuri daily reported. The world’s largest automaker will see its earnings slashed by 150 billion yen (US$1.85 billion) in the second half of the fiscal year to March, it said without naming sources. Toyota declined to confirm the report. Toyota’s annual earnings decline 30 billion yen on every one yen increase against the dollar, the report said.

But the company is expected to keep its full-year forecast for an operating profit at 330 billion yen thanks to brisk sales in emerging economies and on government incentives for environmentally friendly cars, the Yomiuri said. The greenback was changing hands at 81.05 yen Monday.