Toyota Boshoku Drops on Charge, Forecast Reversal to LossDave McCombs and Masatsugu Horie
Toyota Boshoku Corp., a supplier to the world’s largest carmaker, plunged by the most since 2011 in Tokyo trading after underperforming sales at overseas units prompted a writedown and a forecast for a loss this fiscal year.
The Aichi, Japan-based maker of seats, door trim and auto interior parts booked a 12.3 billion yen ($105 million) impairment charge , the company said Tuesday in a statement. Net loss will probably be 1 billion yen in the year ending March, compared with the previous forecast for a 12 billion yen profit.
The company, 54 percent owned by the Toyota Group, slashed the value of Boshoku Automotive Europe, a car interior business it acquired from Polytec Holding AG in 2011 because sales were less than projected, Tetsuya Ookouchi, a Toyota Boshoku spokesman, said by phone. A subsidiary in Brazil also underperformed revenue projections, contributing to the impairment charge, he said.
An annual loss would be the company’s first since 2009 and would come as analysts predict sales will jump to a record 1.27 trillion yen in the year ending March, surpassing the fiscal 2008 peak of 1.23 trillion yen.
The parts maker dropped 12 percent to 1,395 yen at the close in Tokyo trading, the biggest decline since March 2011.
Net income fell 54 percent in the nine months ended in December to 10.3 billion yen, the company said today in a statement. Sales rose 7 percent to 952 billion yen.