Toyota Cuts FY 2019 Earnings Forecasts on Stronger Yen

Economy

Nagoya, Aug. 2 (Jiji Press)--Toyota Motor Corp. <7203> said Friday it has revised down its group earnings projections for fiscal 2019, due partly to the yen's strength against other major currencies.

For the year to March 2020, Toyota now expects to log a net profit of 2.15 trillion yen, down from the earlier projection of 2.25 trillion yen, and an operating profit of 2.4 trillion yen, down from 2.55 trillion yen. Sales are projected at 29.5 trillion yen, down from 30 trillion yen.

The leading Japanese automaker now assumes exchange rates of 106 yen to the dollar for fiscal 2019, against the previously assumed 110 yen, and 121 yen to the euro, against 125 yen.

On top of the higher yen, concerns about the global economy are on the rise amid the escalating U.S.-China trade war, casting a dark cloud over not only Toyota but also other automakers, industry sources warned.

The new net profit, operating profit and sales estimates are up 14.2 pct, down 2.7 pct and down 2.4 pct, respectively, from the levels Toyota reported for fiscal 2018.

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Jiji Press