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Strong yen sends Toyota's quarterly profit sinking 36 pct

Associated Press Associated Press 8/11/2016 By YURI KAGEYAMA, AP Business Writer
FILE - In this June 29, 2016, file photo, Toyota logo is seen at a Toyota showroom in Tokyo. Toyota Motor Corp. reported Tuesday, Nov. 8, 2016, that July-September profit sank 36 percent, hammered by the strong yen, which erodes the overseas earnings of Japanese exporters. Lagging sales also helped send the Japanese automaker’s fiscal second quarter profit lower to 393.7 billion yen ($3.8 billion), down from 611.7 billion yen the same period the previous year. (AP Photo/Eugene Hoshiko, File) © The Associated Press FILE - In this June 29, 2016, file photo, Toyota logo is seen at a Toyota showroom in Tokyo. Toyota Motor Corp. reported Tuesday, Nov. 8, 2016, that July-September profit sank 36 percent, hammered by the strong yen, which erodes the overseas earnings of Japanese exporters. Lagging sales also helped send the Japanese automaker’s fiscal second quarter profit lower to 393.7 billion yen ($3.8 billion), down from 611.7 billion yen the same period the previous year. (AP Photo/Eugene Hoshiko, File)

TOKYO — Toyota Motor Corp. reported Tuesday that its July-September profit sank 36 percent as a stronger yen eroded its overseas earnings.

Lagging sales also pinched the Japanese automaker's fiscal second quarter profit, which fell to 393.7 billion yen ($3.8 billion) from 611.7 billion yen in the same period the previous year.

Quarterly sales slipped nearly 9 percent to 6.48 trillion yen ($62.3 billion).

The manufacturer of the Prius hybrid, Camry sedan and Lexus luxury models expects to sell 10.1 million vehicles worldwide through March 2017, including sales by affiliates Hino Motors and Daihatsu Motor Co.

Toyota has led world vehicle sales in recent years but this year is vying with German automaker Volkswagen AG and General Motors Co., which also expect to sell about 10 million vehicles globally, for the top spot.

Volkswagen's global vehicle sales surpassed Toyota's in the first half of the year despite a scandal over cars it rigged to cheat on U.S. diesel emissions tests.

Toyota raised its annual profit forecast to 1.5 trillion yen ($14.4 billion) from an earlier 1.45 trillion yen ($13.9 billion). But that's still below the 2.3 trillion yen it earned last year.

Toyota said that in the first fiscal half, it carried out cost reductions that added 220 billion yen ($2.1 billion) to the company's operating profit, but the unfavorable currency fluctuations erased 565 billion yen ($5.4 billion).

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Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

Her work can be found at http://bigstory.ap.org/content/yuri-kageyama

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