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Toyota profit falls 42% due to weak sales

dpadpa 8/11/2016

Toyota has reported another sharp decline in net profit due to a strong yen and weak sales .

Toyota's operating profit for the July-to-September quarter dropped 42.6 per cent from a year earlier to 474.6 billion yen ($A5.8 billion), the company says.

Japan's largest carmaker also booked a net profit of 393.7 billion yen for the fiscal second quarter, down 35.6 per cent from the same period the previous year, while sales declined 8.8 per cent to 6.48 trillion yen.

The yen has climbed about 13 per cent against the US dollar this year, which makes Japanese products less appealing overseas and hurts the earnings of Japan's exporters.

Toyota, however, lifted its operating profit outlook for the current financial year to March 2017 to 1.7 trillion yen, from its previous estimate of 1.6 trillion. It also boosted its net profit forecast to 1.55 trillion yen, up from 1.45 trillion yen.

The carmaker maintained its sales outlook at 26 trillion yen.

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