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Toyota reports wider than expected loss

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Toyota Swings to Wider-Than-Expected Loss

05/08/09 - 07:12 AM EDT

Joseph Woelfel

Toyota(TM Quote), the world's largest automaker, reported a fiscal-year loss of 437 billion yen ($4.4 billion), wider than its internal forecasts, and said it expects an operating loss of 850 billion yen in fiscal 2010.

Sales for the year ended March 31 fell 21.9% to 20.53 trillion yen. The operating loss was 461 billion yen.

The prior year Toyota reported earnings of 1.72 trillion yen on sales of 26.29 trillion yen.

In February, the automaker said it expected to report a fiscal 2009 net loss of 350 billion yen as global demand for its cars plunged and a strengthening yen hurt its results.

"Both revenues and profits declined severely during this period. The negative impact was a consequence of the significant deterioration in vehicle sales particularly in the U.S. and Europe, the rapid appreciation of the yen against the U.S. dollar and the euro and the sharp rise in raw materials," said President Katsuaki Watanabe in a statement Friday.

The loss in the January-March quarter was 765.8 billion yen ($7.74 billion).

Toyota projects a net loss in fiscal 2010 of 550 billion yen, and expects sales to fall 19.6% to 16.5 trillion yen.

The company also said it plans to cut its dividend.

Standard and Poor's on Friday lowered its long-term credit rating on Toyota one notch to "AA" -- the third-highest rating -- and gave a "negative" outlook. But S&P also said the automaker "maintains a minimal financial risk profile, characterized by a strong capital structure with massive liquidity."

Toyota was likely to face hard times for a while because demand will likely remain depressed into 2010 before it could hope to again count on its strengths to boost profits once a recovery arrives, S&P said in a statement.

Toyota's vehicle sales for the fiscal year ended March 31 fell 15.1% to 7.57 million vehicles from 8.91 million vehicles the previous year. It expects to sell even fewer vehicles -- 6.5 million -- in the fiscal year through March 2010.

Pardon me while I search for a tiny violin....

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Yeah stupid Toyota, asking the US government for bailouts and blaming the UAW for all their woes. Wait a sec that's not Toyota! That's GM! Silly me.

No, Toyota will just beg Japan for money instead.


Quite the management shake-up this week...40% replaced...on top of a loss that exceeded GM for the quarter. I thought this company was god's gift to the auto world?

Edited by mustang84
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Yeah stupid Toyota, asking the US government for bailouts and blaming the UAW for all their woes. Wait a sec that's not Toyota! That's GM! Silly me.

Toyota requested money for their financing arm, GM requested money because they're essentially insolvent. Big difference.

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BTW, why does every domestic fan always say that "well i thought Toyota was perfect" and stuff. And don't say that "well a buddy of mine has a 98 Corolla and is like in love with it" because we all know that is ancedotal evidence. Seriously what gives you guys that impression?

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I don't think that Toyota is terrible, I just don't think that they build very creative cars. IMHO, since the Celica of the early 1970's, the only two creative cars they have done are the second gen MR2 and the first gen xB.

Other than that...they are just...bland....

Glad your enjoying what must be the last 84 Cressida on the road.


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Um, thanks. Even though I know there are more out there. :P

...there are indeed. I just never aspired to own...er...um...a Cressida.


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