Toyota sees first annual net loss since 1950
source: http://news.yahoo.com/s/ap/20090206/ap_on_bi_ge/as_japan_earns_toyota
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TOKYO – Toyota, the world's largest automaker, sank into the red for the October-December quarter and acknowledged Friday it was heading for its first annual net loss since 1950 because of plunging global sales and the strong yen.
Joining a string of Japanese companies that have slashed forecasts, Toyota Motor Corp. said it expects a net loss of 350 billion yen ($3.85 billion) for the year through March.
That's a stunning reversal from the record 1.72 trillion yen profit the maker of the Prius hybrid and Lexus luxury line had earned the previous fiscal year. In December, the company thought it would eke out a small annual net profit, but the outlook has darkened since then, especially with the dramatic contraction in the U.S. auto market on which Toyota depends so heavily.
For the fiscal third quarter, Toyota racked up a loss of 164.7 billion yen ($1.81 billion), down sharply from the 458.6 billion yen profit it had the same period the previous year, as the global slump squelched sales.
Quarterly sales plunged 28.4 percent to 4.8 trillion yen.
Toyota said the last time it had the equivalent of a net loss was in 1950, when it reported just parent results under different accounting standards than it uses now.
The damage to Toyota's bottom line was particularly pronounced because the company had been on such an aggressive growth track in recent years, but the downturn came extremely suddenly, said Yasuaki Iwamoto, analyst with Okasan Securities Co. in Tokyo.
"Toyota is having serious problems responding," he said. "It boasts a full and global lineup of products. But the world's auto demand changed in a flash."
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we are in some hard times.
Joining a string of Japanese companies that have slashed forecasts, Toyota Motor Corp. said it expects a net loss of 350 billion yen ($3.85 billion) for the year through March.
That's a stunning reversal from the record 1.72 trillion yen profit the maker of the Prius hybrid and Lexus luxury line had earned the previous fiscal year. In December, the company thought it would eke out a small annual net profit, but the outlook has darkened since then, especially with the dramatic contraction in the U.S. auto market on which Toyota depends so heavily.
For the fiscal third quarter, Toyota racked up a loss of 164.7 billion yen ($1.81 billion), down sharply from the 458.6 billion yen profit it had the same period the previous year, as the global slump squelched sales.
Quarterly sales plunged 28.4 percent to 4.8 trillion yen.
Toyota said the last time it had the equivalent of a net loss was in 1950, when it reported just parent results under different accounting standards than it uses now.
The damage to Toyota's bottom line was particularly pronounced because the company had been on such an aggressive growth track in recent years, but the downturn came extremely suddenly, said Yasuaki Iwamoto, analyst with Okasan Securities Co. in Tokyo.
"Toyota is having serious problems responding," he said. "It boasts a full and global lineup of products. But the world's auto demand changed in a flash."
more at link...
we are in some hard times.
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