Skip navigation
Newswire

CORRECTED - CORRECTED-(OFFICIAL)-Toyota Q1 operating profit may be down 11 p

In TOKYO story headlined "Toyota Q1 operating profit may be down 11 pct-paper" please delete third paragraph, referring to Japanese accounting rules (company corrects type of accounting rules)

A corrected story follows

TOKYO, July 30 (Reuters) - Toyota Motor Corp is likely to report an 11 percent fall in operating profit in the first quarter of the business year, hit by a stronger yen, the Nihon Keizai newspaper said on Wednesday.

The paper said Toyota was likely to report group operating profit of 330 billion yen ($2.75 billion) for the April-June period on sales of 3.95 trillion yen, under U.S accounting rules.

Despite strong sales of new vehicles such as the Wish minivan at home and abroad, the strength of the yen against the dollar dragged down the automaker's profit by some 50 billion yen ($417 million) during the April-June period, the paper said.

The dollar averaged around 118 yen during the quarter, compared with 127 yen during the same period a year ago.

Higher research and development spending and information-technology-related expenses also eroded its profit.

Group net profit is seen steady at around 210 billion yen, marginally below a year-ago level, it said.

The company has said it expects a recovery in the North American market and would roll out profitable sport utility vehicles later this year. ($1=119.84 Yen)