Toyota subsidiary and small car specialist Daihatsu says it expects profit and sales to decline in fiscal 2008 for the first time in seven years.
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The firm cited the global downturn and high yen for the latest downward revision.
Daihatsu said it expects to book a net profit of 21 billion yen on sales of 1.63 trillion yen for the year to March 31, lowering its earlier forecasts of a net profit of 32 billion yen on sales of 1.78 trillion yen.
In the April-December period of 2008, Daihatsu posted sales of 1.25 trillion yen, up 2.2% over a year earlier, thanks to brisk sales of Tanto minicars. But net profit dropped 10.7% to 18.3 billion yen due to higher steel and other materials prices.
Faced with slowing exports and a cutback in production by Toyota, Daihatsu said it will suspend manufacturing operations at its principal plant in Ikeda, Osaka Prefecture, and another plant in the town of Oyamazaki in Kyoto Prefecture for a total of nine days in February and March.
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By GlobalData
