Summary Box: Toyota cuts profit outlook

AP News
Posted: Dec 09, 2011 12:39 PM
Summary Box: Toyota cuts profit outlook

PUTTING ON THE BRAKES: Toyota Motor Corp. on Friday sharply downgraded its earnings forecast for this fiscal year through March, blaming a strong yen and the massive flooding in Thailand. Japan's biggest automaker expects a net profit of $2.3 billion, down 54 percent from what it projected in August.

STALLED AND SLIDING BACK: The maker of the Camry and Corolla sedans is on track to lose its title as the world's largest automaker this calendar year. Toyota sank to No. 3 in vehicle sales during the first six months, trailing U.S. rival General Motors Co. and Volkswagen AG of Germany.

STRONG YEN HURTS: Compounding the pain is a strong yen, which hit multiple historic highs against the dollar this year. For exporters like Toyota, a strong yen reduces the value of overseas profits when repatriated and makes Japanese products less competitive on prices in markets outside Japan.