Toyota is expected to suffer its first drop in operating profit in nine years this year because of sluggish US sales and a stronger yen, according to a Nikkei daily report.
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Toyota’s consolidated operating profit for the fiscal year to March 2009 is expected to drop by 20% to about 1.7-1.8 trillion yen (17-18 billion dollars), the Nikkei daily reported without citing sources.
Toyota declined to comment on the report.
Revenue in fiscal 2008 is likely to be flat at 26 trillion yen but could fall as a credit crunch hits demand for cars in the North American market, the Nikkei said.
At the same time, Toyota’s global sales by volume are expected to increase thanks to demand in emerging markets such as Russia and China, it added.
With a stronger yen adding to pressure on the automaker’s bottom line, Toyota plans to limit spending on research and development as well as capital investment, the Nikkei said.
Toyota’s revenue for the fiscal year that ended last month is likely to have climbed by about 10% to more than 26 trillion yen, while operating profit is seen holding steady at just under 2.3 trillion yen, it added.
