Toyota Cuts Profit Estimate on Stock Loss
Tokyo, Feb. 6 (Jiji Press)--Toyota Motor Corp. <7203> on Wednesday lowered its net profit forecast for the year ending next month, citing appraisal losses on its shareholdings as stock prices fell late last year.
The Japanese automaker now expects consolidated net profit to decline 25 pct from the previous year to 1.87 trillion yen, down 430 billion yen from its previous projection, on a stock appraisal loss of 310 billion yen.
It will be the first time in two years that Toyota's annual net profit falls short of 2 trillion yen.
The appraisal loss comes from Toyota's holdings of shares in Japanese companies, not overseas firms such as U.S. ride-hailing giant Uber Technologies Inc., sources familiar with the matter said.
Toyota operating officer Masayoshi Shirayanagi told a press conference in Tokyo that the appraisal loss will be temporary. "The expected profit decline will not affect the company's future competitiveness," he said.
[Copyright The Jiji Press, Ltd.]