Toyota likely to report a smaller than expected operating loss
By Andrew C., 30 Aug, 2010. 0 Comments
2010 Toyota 4Runner
Due to recovering sales and a weaker yen, Toyota Motor Co. is seen to report a lower than expected operating loss for the six months to September. The Nikkei daily said that Toyota is expected to report a group operating loss of JPY250bn (US$2.7bn) for the April-September first fiscal half. AFP believes the loss would be much smaller than the JPY400bn earlier projected. Still, that figure is considerably lower than the JPY582bn recorded a year ago. Overall H1 sales were down 32% year on year and are estimated at JPY8.3 trillion; but this is still an increase of JPY500bn from the company's earlier projection, the Nikkei said without naming sources. AFP noted that the report did not mention possible earnings on a net basis. The daily added that Toyota 's Prius hybrid was selling well in Japan due to government tax breaks for environmentally friendly vehicles. Sales of new vehicles also rose in China and other Asian countries while dropping 20-30% in North America and Europe. Another factor that helped improve Toyota's earnings is the weaker than expected yen.
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