Toyota forecasts net profit plunge this year as strong yen bites

The logo of Toyota is pictured at at the 37th Bangkok International Motor Show in Bangkok, Thailand, March 22, 2016. Picture taken March 22, 2016. REUTERS/Chaiwat Subprasom

TOKYO (Reuters) - Toyota Motor Corp 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 (14.71 billion pounds), 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 favourable 120 yen (JPY=) last year.
(Reporting by Minami Funakoshi; Editing by Muralikumar Anantharaman)

Culled from Reuters