Toyota predicts operating loss, first-ever

Posted on Tuesday, 23 December 2008 , 20:12:55 byEmil

Filed under toyotatokyojapanbarclayscapitalToyota

Toyota predicts operating loss, first-ever

Just as anticipated last week, on Monday Toyota forecast some operating loss involving 1.66 billion Dollars for this fiscal year in March next year. This announcement came from Katsuaki Watanabe, the automaker’s president, at the annual year-end conference (press) of the company in Nagoya, in the Japanese territory. This loss would be quite a first for the automaker since it began showing results on 1941.

Toyota blamed the lazy credit market for the slow sales in the whole world. “The change that has hit the world economy is of a critical scale that comes once in a hundred years,” said Watanabe. He called the drop in sales over the last month “far faster, wider and deeper than expected.”

Watanabe indicated that Toyota’s net profit expectation would drop from 1.7 trillion yen - about $19 billion - to just $558 million. Last year, Toyota posted some operating profit of around 25 billion Dollars. This is the 2nd time Toyota dropped this year the earnings forecast.

Barclays Capital auto analyst in Tokyo - Tsuyoshi Mochimaru reported the Associated Press Toyota will be continuing to struggle in the upcoming future.

“The problem is next year,” he affirmed, while adding: the latest changes were really within all the expectations. “It’s unmistakable that things are extremely tough for Toyota.”