Hyperdrive
Toyota Reveals Pessimistic Outlook, Blames ‘Unprecedented’ Costs
- Carmaker cites higher prices for logistics, raw materials
- Sets conservative currency forecast, sees little yen impact
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Toyota Motor Corp. forecast a 20% decline in operating profit for the current fiscal year despite posting robust annual car sales, citing an “unprecedented” rise in costs for logistics and raw materials that are negating the benefits of a depreciated yen.
The world’s largest automaker forecast an operating profit of 2.4 trillion yen ($18.4 billion) for the fiscal year through March, short of 3 trillion yen posted during the just-ended period, and well down on analysts’ average projection for 3.4 trillion yen. Shares fell 4.4%, the most in two months.