PREVIEWJapan carmakers Q3 to grow but roadblocks ahead
(For a table of earnings forecasts double click [ID:nT66351])
*What: Top Japanese automakers‘ third-quarter earnings
*When: From Jan 30
*Overseas sales grow, forex impact mixed as yen gains against
dollar and falls against other currencies
By Chang-Ran Kim, Asia auto correspondent
TOKYO, Jan 29 (Reuters) - Top Japanese automakers are due to
report higher third-quarter earnings led by strong overseas
sales, but the next few quarters could see profits fall as the
dollar weakens against the yen.
Shares in Toyota Motor Corp (7203.T: Quote, Profile, Research), Honda Motor Co (7267.T: Quote, Profile, Research)
Nissan Motor Co (7201.T: Quote, Profile, Research) and other carmakers have suffered this
year as investors price in the risk of a U.S. recession and a
further climb in the yen against the dollar.
Such worries are likely to persist for some time, analysts
said, but for the latest quarter most Japanese carmakers likely
offset any negative impact of the dollar’s fall with brisk sales
growth.
In the next few quarters, a stronger yen will likely drag
down the bottom line, but booming business in emerging markets
such as China and Russia, as well as Japanese cars‘ reputation
for fuel efficiency amid record-high gasoline prices will keep
fundamentals solid for most, they said. Continued…
