Toyota expects a 31 percent drop in full-year profit

Article by Christian A., on June 10, 2011

With its earnings eroded, Toyota Motor Corp.’s forecast for its full-year profit fell below the estimates of analysts. The factors cited were the decreasing sales from a loss in production and the stronger yen.

In last Friday’s statement, the company said that its net income may drop to 280 billion yen ($3.5 billion) during the year ending in March, from 408 billion yen during the same period last year.

On the other hand, the average estimate from 13 analysts that Bloomberg has compiled in the past 28 days is 421.8 billion yen.

Toyota's chief financial officer Satoshi Ozawa stated that the company will exert full effort to recover from the delays in delivery.

Factory disruptions due to the March earthquake in Japan may cause the company to fall behind Volkswagen AG and General Motors Co. in worldwide sales this year after Akio Toyoda's first full year as president was dominated by recalls of at least 10 million units due to unintended acceleration problems.

Toyota forecasts that domestic production will bring back 90 percent of normal levels this June, with worldwide production to normalize by December. In addition, the company expects its worldwide sales to decline to 7.24 million vehicles this fiscal year from 7.31 million in the same period last year.

Moreover, the company disclosed that the lower sales will decrease earnings by 120 billion yen. Last May, the company revealed that its net profit almost doubled in the last fiscal year, but it withheld its full-year forecast to give more time to assess the impact of the March disasters in Japan on sales and earnings.

Topics: toyota, profit

If you liked the article, share on:

Comments

Recommended

There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries