Toyota has raised its full-year financial outlook, despite the recall
By Andrew C., 30 Aug, 2010. 0 Comments
Even with the massive recalls, Toyota has raised its full-year financial outlook. Because of a better-than-expected third quarter, Toyota had bumped its annual forecast ending in March.
Initially, Toyota had called for a $3.85 billion operating loss for the fiscal year ending March 31. Since then, it has reduced this figure to $220 million. It‚ notable that most analysts had pegged Toyota to lose $418 million on the year. Toyota‚ latest forecast actually does take into account the latest rash of recalls. Toyota set aside about $1.1 billion in recall costs and expects the recall to decrease sales by about 100,000 vehicles, equivalent to losing $880 million. Despite appearances that Toyota‚ yearly forecast is looking up, it has yet to be seen how Toyota does after its largest recall gets resolved. Toyota‚ next fiscal year begins on April 1. In an interview with Reuters, Toyota Senior Managing Director Takahiko Ijichi said that it is currently difficult to measure the impact on sales for the next financial year. He said that Toyota will do what it can to regain consumers‚Äô trust. Toyota‚ sales dropped 16% in the U.S., Toyota‚ largest market, in January as a result of the recalls.
[via autonews - sub. required]
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