October 23, 2018 / 6:53 AM / a year ago

Japan's Subaru halves first-half profit outlook on faulty car check row

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) - Automaker Subaru Corp (7270.T) on Tuesday nearly halved its operating profit forecast for the April-September period due to higher quality-related costs, in the wake of it not adhering to proper inspection steps last year that led to a vehicle recall.

The Japanese automaker forecasts operating profit of 61 billion yen ($542.7 million) for six months through September, compared with the previous estimate of 110 billion yen.

The company revealed in October last year that uncertified staff had carried out final tests of new cars for the domestic market for decades. The faulty inspections violated transport ministry norms and eventually led to the recall of 395,000 vehicles.

Reporting by Makiko Yamazaki; Editing by Rashmi Aich

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