6 Major Japanese Automakers Foresee Lower Profits in FY 2018

May 15, 2018

Tokyo- Six of Japan's seven major automakers are forecasting falls in their respective group operating profits in the current business year through next March, due chiefly to the yen's strengthening, according to their latest earnings reports.

The yen's anticipated appreciation against the dollar is projected to push down the seven automakers' operating profits by 705.4 billion yen in total, with the negative impact put at 230 billion yen by Toyota Motor Corp. and 135 billion yen by Nissan Motor Co..

Specifically, many of the makers expect the dollar to trade 105 yen, down from 111 yen in the previous year.

"A stronger yen via-a-vis the dollar is likely to offset improvements in business performances," Nissan President Hiroto Saikawa said on Monday.

Nissan forecasts its annual sales will grow 0.4 pct to 12 trillion yen but operating profit will drop 6.0 pct to 540 billion yen.

Mitsubishi Motors Corp., a Nissan affiliate, was the only one of the seven to project profit growth, on the back of an increase in its output capacity in Asia.

Meanwhile, all seven makers anticipate growth in their global vehicle sales, with Honda Motor Co. expecting its unit sales to expand mainly in North America and China to hit a record high.

The Toyota group also projects record global vehicle sales, although domestic sales are forecast to go down as the effects of recently launched models are fading. Jiji Press