With its earnings eroded, Toyota Motor Corp.’s forecast for its full-year profit fell below the estimates of analysts. The factors cited were the decreasing sales from a loss in production and the stronger yen.
In last Friday’s statement, the company said that its net income may drop to 280 billion yen ($3.5 billion) during the year ending in March, from 408 billion yen during the same period last year.
On the other hand, the average estimate from 13 analysts that Bloomberg has compiled in the past 28 days is 421.8 billion yen.
Toyota's chief financial officer Satoshi Ozawa stated that the company will exert full effort to recover from the delays in delivery.
Factory disruptions due to the March earthquake in Japan may cause the company to fall behind Volkswagen AG and General Motors Co. in worldwide sales this year after Akio Toyoda's first full year as president was dominated by recalls of at least 10 million units due to unintended acceleration problems.
Toyota forecasts that domestic production will bring back 90 percent of normal levels this June, with worldwide production to normalize by December. In addition, the company expects its worldwide sales to decline to 7.24 million vehicles this fiscal year from 7.31 million in the same period last year.
Moreover, the company disclosed that the lower sales will decrease earnings by 120 billion yen. Last May, the company revealed that its net profit almost doubled in the last fiscal year, but it withheld its full-year forecast to give more time to assess the impact of the March disasters in Japan on sales and earnings.