Covid-19: Subaru forecasts weakest annual profit in 9 years
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The Subaru logo is displayed at the North American International Auto Show in Detroit, Michigan, US. Credit: Reuters Photo
Subaru Corp forecast on Tuesday that its annual operating profit would drop to a nine-year low this year as it expects to take a sales hit due to the coronavirus pandemic which has sapped global demand for cars.
Japan's No. 7 automaker expects annual operating profit to sink 62 percent to 80 billion yen ($754.3 million), its lowest since the 2011/12 year, and weaker than estimates for a 133 billion yen annual profit compiled from 19 analysts polled by Refinitiv.
It posted an operating loss of 15.7 billion yen in the April-June quarter, its biggest quarterly operating loss in nearly 11 years due to a slump in car sales in the United States, its largest market where the number of coronavirus infections continues to climb.