Toyota gives $5bn loss warning - Mercedes-Benz Forum

 
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post #1 of 5 (permalink) Old 02-07-2009, 01:32 PM Thread Starter
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Toyota gives $5bn loss warning

Toyota gives $5bn loss warning


Toyota ousted General Motors for the top spot in global vehicle sales last year [Reuters]

Japan's Toyota Motor Corp, the world's biggest car manufacturer, has said that it faces an operating loss of almost $5bn for the fiscal year to March.

Announcing its latest quarterly results on Friday, Toyota said its expected its full-year loss would be now be three times what it had forecast just six weeks ago.

If confirmed the yearly loss would be the biggest faced by the company in its 70-year history.

For the latest quarter alone, from October to December 2008, Toyota said it saw an operating loss of $3.97bn, with little sign that the market is anywhere near recovering.

It released its latest earnings data after the close of Friday's trade on the Tokyo stock market.

Sharp downturn

For the year to March, Toyota officials said they are now predicting a loss of 450bn yen ($4.95bn), a sharp downturn from the 150bn yen loss forecast in December.

Toyota's operating profit stood at 2.27 trillion yen ($24.98bn) a year earlier, but it is now struggling to cut production after years of building new plants to keep up with demand.

Like other Japanese car manufacturers, Toyota has been hit hard by the twin effects of the global slump set off by the US financial crisis combined with the rising value of the yen which has reduced overseas earnings.

Toyota shares have lost about half their value over the last year amid a plunge on the Tokyo stock market.

Plunging sales

Toyota replaced General Motors Corp for the first time in global vehicle sales, a position the American company had held for 77 years.

General Motors posted an 11 per cent drop in sales for the year, while Toyota sales fell four per cent.


Toyota has moved to cut production to match slumping car sales worldwide [EPA]


Car manufactuers around the world are enduring one of the worst periods in the history of the industry.

Consumers are shunning showrooms asd the fallout from the credit crunch and increasing job cuts takes its toll.

In anticipating the projected loss, Moody's Investors gave Toyota a negative rating outlook, saying the downgrade was "driven by the significantly impaired state of profitability".

Since its previous forecast in December, Toyota has announced additional reductions in production plans, but analysts say even those may not go far enough.

"The drop in global demand is growing more serious," Shinya Naruse, auto analyst with Nomura Securities in Tokyo, said.

"It's difficult to see when things are going to bottom out, and that's why there's no end yet to the rounds of production adjustments."

Source: Agencies
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post #2 of 5 (permalink) Old 02-07-2009, 02:39 PM
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They have started laying off hourly workers here in Central Kentucky at the Camry plant. It started with the temp/part-time employees [who are all now gone] and has now move to line workers.

The secondary plants [wheels, sunroof, seats, etc] have been cutting back as well. They stopped feeding the Nissan plant a bit back and now their Toyota and Honda work is slowing.

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post #3 of 5 (permalink) Old 02-07-2009, 08:14 PM
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What sticks in my memory when we were discussing the Auto Company bailout was some BWOTTER saying that GM just didn't make cars anybody wanted. Now that Toyota, Nissan, Honda, and KIA are all showing the same problem, just what is GM to blame for?

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post #4 of 5 (permalink) Old 02-07-2009, 10:06 PM
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Quote:
Originally Posted by bottomline1 View Post
What sticks in my memory when we were discussing the Auto Company bailout was some BWOTTER saying that GM just didn't make cars anybody wanted. Now that Toyota, Nissan, Honda, and KIA are all showing the same problem, just what is GM to blame for?
I have been saying that from Day 1. This problem is global. GM just always gets the blame because of Union or quality or style or color...

The difference right now is that the Asian makers will not have to beg to get government support for their companies. Japan and Korea understand the need for a strong manufacturing foundation.

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post #5 of 5 (permalink) Old 02-07-2009, 10:08 PM
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Originally Posted by bottomline1 View Post
What sticks in my memory when we were discussing the Auto Company bailout was some BWOTTER saying that GM just didn't make cars anybody wanted. Now that Toyota, Nissan, Honda, and KIA are all showing the same problem, just what is GM to blame for?
There is an economy on the brinks or total failure, are you not aware of that fact? Ah, yeah, I forgot, you still believe what Paulson said just a few onths ago and Jawquack kept on singing: there is no problem, the stock market going down has nothing to do with the economy...(hey Jay, remember when you said that?)
Please check a hypnosis specialist to get you off the spell

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