July 10, 2018 / 6:13 AM / 4 months ago

Subaru gives modest growth outlook, shares dip

FILE PHOTO: The Subaru logo is seen at the New York Auto Show in the Manhattan borough of New York City, New York, U.S., March 28, 2018. REUTERS/Brendan Mcdermid/File Photo

TOKYO (Reuters) - Japanese automaker Subaru Corp (7270.T) on Tuesday forecast cumulative sales of 10 trillion yen ($90 billion) over the next three years, a modest outlook that prompted a dip in its shares.

Subaru in May forecast sales of 3.25 trillion yen in the current year through March, meaning no growth is expected over the medium-term. The shares fell 1.25 percent to 3,157 yen by late trade.

The company, Japan’s sixth-biggest automaker, also forecast a cumulative operating profit of 950 billion yen over the next three years. It previously forecast profit to slide 21 percent to 300 billion yen in the year through March, due to a stronger yen and increased marketing costs in the United States.

On Tuesday, it said the latest outlook did not take into account the possibility of higher U.S. tariffs. Washington in May launched a national security investigation into car and truck imports which could lead to new tariffs on one of Japan’s major export products to the United States.

($1 = 111.1500 yen)

Reporting by Maki Shiraki; Editing by Stephen Coates

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