Toyota Cautions Profits Are Likely To Fall Sharply

Toyota Motor Co. (TM) - Get Report posted weaker-than-expected full year results Wednesday and cautioned that profits in the current fiscal year are likely to fall sharply as the yen strengthens and sales stall.

The group forecast total vehicle sales of around 10.25 million for the current fiscal year, little changed from year ending in 2017, and net income of ¥1.5 trillion, a figure that fall significantly short of the FactSet consensus of ¥1.9 trillion.

Toyota based its projections, in part, on an average exchange rate of ¥105 against the U.S. dollar, a forecast that is 2.77% higher than last year and 12.5% higher than in the fiscal year that ended in 2015.

This article was written by a staff member of TheStreet.