Japan`s Toyota Motor Corp. slashed its annual net profit forecast by more than half Thursday after first-half earnings tumbled 48 percent due to a stronger yen and weak global economy.

Toyota said its net profit dropped to 493.47 billion yen (5.05 billion dollars) in the six months to September, down from 942.41 billion yen a year earlier.

Operating earnings fell 54.2 percent to 582.07 billion yen as revenue declined 6.3 percent to 12.19 trillion yen, a company statement said.

Toyota, in a close race with General Motors for the title of the world`s top automaker, cut its net profit forecast for the full financial year to March to 550 billion yen from the 1.25 trillion yen previously projected.

That would mark a decline of 68 percent from the previous year.