Toyota profit declines

Toyota profit declines

TOKYO (Reuters): Toyota Motor Corp's profits slid in the first half of the business year and are forecast to fall further in the full year, as strong U.S. sales are no longer enough to offset a tenacious slump at home and in Southeast Asia.

Japan's biggest automaker said it earned 192.65 billion yen (US$1.61 billion) in consolidated net profits in the six months to September 30, down 20 percent from a year earlier.

While a windfall from the weak yen helped it eke out a 1.2 percent gain in consolidated operating profits, this was more than wiped out by a 63 billion yen appraisal loss on securities holdings as Japan's stock market slumped.

And with the yen expected to be stronger in the second half of the business year, Toyota predicted that, for the full year to next March 31, parent operating profits would fall 12.5 percent and parent net profits 26.0 percent from year-ago levels.

Toyota issued consolidated results on a half-year basis for the first time, in response, it said, to an increased globalization of operations and a trend towards greater disclosure of corporate information.