Toyota Motor Corp flagged its smallest annual profit in four years for 2016/17 as the Japanese automaker braces for the impact from a strengthening yen amid slowing demand for some of its car models in the key North American market. Sonia Legg reports.
It's the world's biggest automaker by market value and its biggest rival is embroiled in an emissions scandal. But it's not going all Toyota's way. The Japanese automaker has cut full year operating profit because of a strong yen. It now expects a 44 per cent fall from a year ago to $15.78 billion - that's its smallest profit in four years. (SOUNDBITE) (English): RABOBANK, SENIOR CURRENCY STRATEGIST, JANE FOLEY, SAYING: "A few months ago they said they would base their profit forecasts on an anticipated average rate of 105 and now they have changed that and said they are going to base our assumptions on 102 and of course immediately that wipes out some of their profit." Toyota expects the currency moves to impact its full-year operating profit by almost $10 billion from the year just ended. It says it will now be more aggressive in cutting labour costs and other expenses to offset that. Global vehicle sales were up during the first quarter thanks to Japan, Europe and Asia. They fell in North America but Toyota still expects retail vehicle sales of 10.15 million.