Toyota Profit Tumbles On Strong Yen, But Lifts Full-year View

Toyota profit tumbles on strong yen, but lifts full-year view

TOKYO, Nov 8 (Pakistan Point News - APP - 08th Nov, 2016 ) : Toyota said Tuesday its April-September net profit dived 25 percent, hit by a sharp rally in the Yen and as North American vehicle sales fell again, but it upgraded its full-year outlook. The world's biggest vehicle maker reported a net profit of 946.1 billion yen ($9.1 billion) in the first half of its fiscal year, down from 1.25 trillion yen in the same period last year. Operating profit fell nearly 30 percent to 1.

11 trillion yen, while revenue was off 7.2 percent at 13.07 trillion yen. However, the Japanese automaker boosted its full-year to March net profit forecast to 1.55 trillion yen from an earlier 1.45 trillion yen estimate. "Despite the positive factors such as cost reduction and marketing efforts, operating income was down... due to the significant impact of yen appreciation," Toyota said in a statement. The decline in Toyota's profits underscore the negative impact that a resurgent Currency has had on firms doing a lot of business abroad.

Japan's exporters reaped windfall profits over the past few years as government efforts to kickstart the world's number three economy sharply weakened the yen. That was good for firms such as Toyota and rivals Honda and Nissan because repatriated foreign profits were worth more when the yen was weak and because it boosted their competitiveness overseas. But the currency has rallied since the start of the year as volatile equity markets and Britain's vote to exit the European Union boosted demand for a unit widely seen as a safe investment.