Shares of Toyota Motor Corp <7203.T> slid almost 3 percent on Monday after the company forecast a larger-than-expected fall in operating profit as it struggles to restore production following the earthquake in March.
The automaker on Friday predicted operating profit would fall 35 percent to 300 billion yen ($3.7 billion) in the year to March 2012, well short of the consensus for a 434 billion yen profit in a poll of 23 analysts by Thomson Reuters I/B/E/S.
Toyota, which makes around 3 million cars in Japan a year, also said the yen's strength would eat into profits, adding pressure to shift more production overseas. The Japanese currency is about 5 yen stronger than the 85 per dollar level that Toyota says it needs to break even on vehicles produced in Japan.
Toyota, which says its global production will return to normal by November as supplies of parts are restored, forecast global sales to fall 1 percent to 7.24 million vehicles this business year.
That would put the Japanese carmaker below General Motors
Toyota shares were down 2 percent at 3,235 yen in early trade on Monday, after falling as low as 3,210 yen. The benchmark Nikkei <.N225> was down 0.8 percent.
(Reporting by Tim Kelly; Editing by Chris Gallagher)