Toyota Post 28 Percent Drop In Quarterly Profit

Tokyo, Japan (AHN) - Toyota Motor Corp reported Thursday a 28 percent drop in fiscal first quarter profit on slumping U.S. auto sales and an unfavorably currency exchange rate.

The automaker posted fiscal first quarter net income of 353.66 billion yen ($3.23 billion), down from the 491.5 billion yen earned in the same period a year earlier. Revenue fell 4.7 percent to 6.22 trillion yen ($56.8 billion).

Increases in the yen against other major currencies during the quarter cut into Toyota's bottom line to the tune of 200 billion yen ($1.8 billion).

The company saw U.S. sales fall 4.3 percent to 729,000 vehicles while European sales were even weaker, down 9.6 percent from last year to 301,000 vehicles. However, total worldwide sales rose 1.1 percent to 2.19 million vehicles. Asia sales provided a boost with an 18 percent increase to 262,000 vehicles.

Toyota reaffirmed its earnings forecast for fiscal 2009 as it expects profit of 1.25 trillion yen ($11.43 billion) on 25 trillion yen ($228.5 billion) in total revenue. Both estimates represent a decline from the previous year's results.

In late July, the company said it expects U.S. sales to fall 7 percent as demand for its trucks and SUVs continues to deteriorate.

Shares of Toyota finished Thursday down 55 cents to $85.90 a share.