Toyota Says Net Profit to Plunge This Year on Strong Yen

Toyota Motor forecast on Wednesday a plunge in net profit for the current year, snapping three straight years of record profit, hit by a sharp appreciation in the yen.

After net profit rose 6.4 percent in the year ended March to 2.31 trillion yen ($21.26 billion), Toyota is forecasting it will drop 35 percent this year to 1.5 trillion yen. That compares with the average estimate of 2.25 trillion yen for the current year, based on predictions from 28 analysts polled by Thomson Reuters I/B/E/S.

Toyota expects operating profit, which excludes earnings made in China, will drop 40 percent this year to 1.7 trillion yen, based on the assumption that the dollar will average 105 yen this year. The dollar averaged a far more favorable 120 yen last year.

($1 = 108.6600 yen)

(Reporting by Minami Funakoshi; Editing by Muralikumar Anantharaman)