Japanese carmakers expect decline in profits

Japanese carmakers expect decline in profits

Many Japanese carmakers are expecting their operating profits to decline this fiscal year. Their bottom lines are being negatively impacted by a stronger yen and fierce competition in the US market.

Seven major automakers have released their earnings reports for fiscal 2016, which ended in March.

Five of them said their operating profits were down from the previous year. Toyota's fell 30.1 percent, Subaru's 27.4 percent and Mazda's 44.6 percent.

In these reports, the companies also announced their outlooks for fiscal 2017. Toyota said its operating profit will decrease by 19.8 percent. Nissan, Honda, Subaru and Suzuki also expect profits to drop.

Analysts say their earnings results will depend on currency movements and sales in the US.