Subaru disappoints with Q2 profit, cuts annual forecast

Tokyo

JAPAN'S Subaru Corp on Monday reported a disappointing operating profit for the second quarter, and cut its full-year forecast as it expects to sell fewer cars in the United States, its biggest market, amid fierce competition.

Subaru has been outperforming its bigger Japanese rivals in the key North American market, but increased competition and higher selling incentives have begun to weigh on the carmaker, which also lowered its vehicle sales forecast for the region.