Toyota halves profit forecast

Toyota has cut its profit forecast for this business year by more than half as it continues to suffer from a stronger yen and widespread output disruptions due to Thailand's floods.

Toyota is poised for a record year in production next year, as it rebuilds inventories and puts behind it the natural disasters in Japan and Thailand that hobbled operations and likely knocked it from the top spot into third place at best among global automakers.

But the yen's strength will remain a severe worry.

Japan's top automaker said it expects an operating profit of 200 billion yen (£1.6bn) in the year to March 31, 2012, down 57 per cent from last year and well below a consensus forecast of 419bn yen in a poll of analysts.