TOKYO — Subaru Corp. lowered its annual profit forecast on expectations of a stronger yen and the impact on production from a typhoon last month.
Japan’s smallest major automaker, which is owned a fifth by top-ranked Toyota Motor Corp., cut its forecast for operating profit to 220 billion yen ($2 billion) for the year ending March 2020, from a previous forecast of 260 billion yen.
Subaru revised its forecast for the yen to average 107 versus the dollar over the period, from 110 previously. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases.
