TOKYO — Japan's biggest automaker Toyota on Tuesday said first half net profit tumbled on the impact of the March earthquake on production and sales, as a strong yen continued to dent profitability.The car giant, like rival Honda, also withdrew its full year forecasts as Thailand's worst flooding in decades forced plant closures there that threaten to further undermine efforts to recover from the impact of Japan's disasters.Thailand's floods have further clouded
Toyota's outlook in another challenging year that followed millions of safety-related recalls, analysts say.
The firm has been forced to halt operations at its three Thai plants until at least November 12, as a shortage of parts disrupts output at home, in Asia and as far away as North America and South Africa.The Japanese automaker is seen as likely to lose its crown as world's biggest automaker this year as competition from the likes General Motors and Volkswagen increases. It only overtook GM in 2008 after the US firm had held the position for decades.
On a consolidated basis, net income for Toyota's fiscal first half from April to September fell to 81.5 billion yen from 289.1 billion yen a year earlier. Sales fell 17.2 percent to 8.0 trillion yen.It swung to an operating loss of 32.6 billion yen for the six-month period, compared with a year-earlier profit of 323.1 billion yen.
The unit has remained high despite attempts by Japan to weaken it through conducting yen-selling market interventions, raising questions as to whether exporters such as automakers should shift more production abroad.
Toyota is seen by ratings agencies as the most exposed among Japan's big three automakers to currency movements and has fewer near-term options to offset the negative impact of a stronger yen.
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