Toyota cuts profit forecasts as global sales slump

The revision at the world's biggest automaker had been flagged by some Japanese media last week, after rival Honda Motor Co also took the rare step of altering its guidance outside the usual quarterly reporting season.

Toyota cut its group operating forecast to a loss of 150 billion yen ($1.7 billion) for the year to March 31, after shocking financial markets last month by slashing its group operating profit forecast by 1 trillion yen to 600 billion yen.

Analyst forecasts on Reuters Estimates ranged from a loss of 150 billion yen at the low end, to a profit of 800 billion yen for figures not updated since conditions deteriorated further in the past month.

Toyota expects its group net profit at 50 billion instead of 550 billion yen.

Honda last week cut its annual profit forecast by 67 percent, and outlined a list of counter-measures such as putting off non-urgent investments to prop up its profitability.

In the United States, President George W. Bush threw struggling automakers General Motors Corp and Chrysler LLC a lifeline of up to $17.4 billion to stave off bankruptcy as they reel under slumping demand.

($1=89.27 Yen)

(Reporting by Chang-Ran Kim; Editing by Lincoln Feast)