TOKYO (TR) – Toyota Motor first half profit fell nearly 72 percent to 81.6 billion yen ($1 billion) following production disruptions caused by the Great East Japan Earthquake and severe flooding in Thailand, the Associated Press said.
Japan’s largest carmaker also withdrew its full year forecast, the AP reported. The flooding in Thailand forced the automaker to halt operations at three plants there creating a parts shortage that may impact the production of 150,000 vehicles globally. “It looked as though they were about to get back on track and then got hit by this latest derailment,” said Chintan Talati, an analyst at TrueCar.com, and cited by AP.
Toyota said its first half global sales fell 18.5 percent to just over 3 million units due to sluggish sales in key markets such as the U.S., Europe, and at home. The Japanese automaker is now the world’s No. 3 leader in global sales after falling from the No. 1 position last year, the AP said.
The stronger yen is also hurting Japanese exporters. Toyota said it lost 80 billion yen ($1 billion) from its most recent quarterly net income due to the exchange rate, the AP reported.