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.

If you liked the article, share on:

Topics: toyota, profit

Comments

Recommended

We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
The other day, it was confirmed that Volvo will finally bring the XC40 to US soil, where it will first make an appearance at the 2017 Los Angeles Auto Show....
by - November 23, 2017
There is no question that the new BMW M5 (F90) high performance sports sedan is more powerful, faster and more enticing than the previous model. But for interested customers in...
by - November 23, 2017
Following the Tesla Roadster’s electrifying revelation on Thursday, Musk’s highly ambitious goals have skyrocketed when he tweeted about his future plans for the new sports car. Well, kind of. The...
by - November 23, 2017
Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 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