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Toyota Supplier Behind Production Shutdown Pulls Forecasts

  • Aichi Steel withdraws earnings guidance after plant explosion
  • Production halt could be worse than 2011 Japan earthquake
Updated on

The supplier behind Toyota Motor Corp.’s shutdown of all Japan assembly plants for at least one week withdrew its earnings forecasts, as another one of the carmaker’s group companies warned of a bigger disruption than the nation’s 2011 earthquake.

Aichi Steel Corp. said the Jan. 8 blast at its Chita plant, which supplies specialty steel for engine, transmission and chassis components, may reduce pretax profit by about 8 billion yen ($67 million) this fiscal year. Toyota said earlier this week it’s halting all assembly lines from Feb. 8 through Feb. 13 in Japan, where it produces more than 40 percent of its vehicles.