Mainly due to the drop in output of Camry and Prius units from the floods in Thailand, Toyota Motor Corp. cut its full-year profit forecast by 54%. In a recent statement, Toyota said that in the 12 months ending March 31, its net income is expected to drop by 56% to 180 billion yen ($2.3 billion). This profit figure is less than half of the average profit estimated by 21 analysts as compiled by Bloomberg.
In addition, Toyota cut its forecasts for operating profit and sales. Toyota asserted that the disaster in Thailand will cut 120 billion yen from its earnings, over 40% of the losses that resulted from the earthquake in Japan last March.
The floods led to parts shortages and this disrupted the output of Japanese automakers throughout the globe. This worsened a situation that’s already difficult because of the strengthening yen and the Japan disaster.
Satoru Takada, a Tokyo-based auto analyst at TIW Inc., said that it will take Toyota a longer period to recover from its tougher situation, especially with the strong yen.
From a prediction of 7.6 million made earlier, Toyota reduced its sales forecast to 7.38 million vehicles. Toyota had postponed releasing its new projects by a month due to the floods.
Last week, Honda’s Chief Financial Officer Fumihiko Ike said that it will announce its forecasts by the end of January. General Motors is currently on track to take over the top spot from Toyota, which was the biggest automaker for the past three years. [source: Autonews]