Toyota Motor Corp, Japan’s largest automaker scrapped its profit forecast after the appreciating yen and the situation in Thailand pose a fresh threat to production.
Toyota said its net revenues for the first half of the fiscal year totaled 8,015.9 billion yen ($1 billion), a decrease of 17.2 percent compared to the same period last fiscal year.
Operating income decreased from 323.1 billion yen to a loss of 32.6 billion yen, while income before income taxes* was a loss of 1.4 billion yen. Net income** decreased from 289.1 billion yen to 81.5 billion yen.
Operating income decreased by 355.7 billion yen. Major factors contributing to the decrease include the negative effects of marketing activities of 220.0 billion yen and currency fluctuations of 130.0 billion yen.
The yen has hit post-World War II highs versus the dollar and scaled 10-year highs versus the euro in recent months even if the Japanese Central Bank has intervened.
Toyota President Akio Toyoda said that yen was “far beyond what is tolerable…”
In addition, a Toyota spokeswoman said lost output from the Thai floods from October would be about 150,000 vehicles.
The Thai floods, which began in July and now threaten central Bangkok, are compounding the production damage. The Japanese automaker said production cuts in Japan, which began last month, will continue through Nov. 18. A shortage of parts has also forced it to reduce production in nine other countries.
Its North American factories, excluding Mexico, were working at 90 percent of plans.
Toyota sold 2.06 million vehicles worldwide in the latest quarter, according the to company.
By contrast, Nissan Motor Co., Japan’s second-biggest carmaker, last week raised its financial forecasts after it recovered faster than Toyota and Honda.
Toyota’s shares have fallen 22 percent in the year to date, faring worse than Nissan, which is down about 8 percent