Fuji Heavy sees $100 mln loss on global auto slide

TOKYO, Jan 16 - Japan's Fuji Heavy Industries, the maker of Subaru cars, warned on Friday it faced an operating loss of 9 billion yen ($100 million) in the year to March, down from the previously forecast 23 billion yen profit, because of falling demand and the stronger yen.

It also cut its revenue forecast and warned it may cut its dividend, as sliding car sales hit the profits of car makers worldwide.

Fuji Heavy, an affiliate of Toyota Motor Corp, cut its revenue forecast for the year by 10 percent to 1.44 trillion yen, reduced its sales volume target by an unspecified amount and revised its foreign exchange rate assumption for the dollar to 101 yen from 103 yen.

It scrapped its plan to pay a dividend of 9 yen per share for the year and said it would announce a new level once earnings outlooks for the coming fiscal year were clearer.

Fuji Heavy had previously stuck to the earnings guidance issued in April last year, even as many other car makers warned of losses and the United States moved to rescue its big manufacturers.

In the year to last March, Fuji Heavy had operating profit of 46 billion yen on revenues of 1.57 trillion yen. It paid a dividend of 9 yen per share.

Fuji Heavy shares rose 0.8 percent to 261 yen, underperforming the broader auto sector, up 2.3 percent.

Fuji Heavy president Ikuo Mori is scheduled to hold a news conference at 0400 GMT. ($1=89.85 Yen)