Profit slides but Toyota upbeat
Source: Agencies |
June 11, 2011, Saturday
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Print Edition
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TOYOTA yesterday forecast its annual profit to dive 31 percent, hammered by production disruptions from parts shortages, but its outlook projects a robust recovery from the earthquake and tsunami in coming months.
Toyota Motor Corp had not given an earnings forecast earlier because of uncertainties about its production outlook after the March 11 disaster wiped out key parts suppliers in northeast Japan.
Toyota forecast a 280 billion yen (US$3.5 billion) profit for the fiscal year through March 2012, down from 408 billion yen for the previous year.
Most of its earnings will come in the second half of the fiscal year as it is expecting only a 10 billion yen profit for the first half, down drastically from 289 billion yen a year earlier.
The new annual profit forecast was below an estimate by FactSet at 438 billion yen. There was a wide range in analyst forecasts because of uncertainties about production delays.
Tsuyoshi Mochimaru, analyst with Mitsubishi UFJ Morgan Stanley Securities Co, said Toyota generally gives conservative forecasts and the numbers are not a surprise.
"Production recovery is going faster than initially expected. But all the auto makers are making faster-than-expected recoveries."
Mochimaru said production may be recovering even faster at rival Nissan Motor Co, and that Toyota faced an even playing field in competing against rivals.
Toyota reiterated that a complete global production recovery won't happen until November. Even with a recovery, Toyota is expected to lose its spot as the world's top-selling auto maker to General Motors Co this year because of the disasters.
Executive Vice President Satoshi Ozawa brushed off fears about slipping from the top. "There is absolutely no importance in being No. 1," he told reporters. "Our vision is to make good cars and make customers happy."
Toyota is now expecting to sell 7.24 million vehicles for the fiscal year through March 2012, down from 7.31 million vehicles in the previous year.
For the January-March period, Toyota sold 1.79 million vehicles worldwide. That was fewer than the 2.22 million vehicles GM sold and fewer than No. 3 auto maker, Volkswagen AG of Germany, at 1.99 million.
Toyota has seen vehicle sales fall in North America, Japan and Europe, although it has had robust sales in other regions, such as the rest of Asia, Africa and South America. Toyota is especially struggling in the United States, where its May sales fell 33 percent from a year earlier to 108,387.
Toyota Motor Corp had not given an earnings forecast earlier because of uncertainties about its production outlook after the March 11 disaster wiped out key parts suppliers in northeast Japan.
Toyota forecast a 280 billion yen (US$3.5 billion) profit for the fiscal year through March 2012, down from 408 billion yen for the previous year.
Most of its earnings will come in the second half of the fiscal year as it is expecting only a 10 billion yen profit for the first half, down drastically from 289 billion yen a year earlier.
The new annual profit forecast was below an estimate by FactSet at 438 billion yen. There was a wide range in analyst forecasts because of uncertainties about production delays.
Tsuyoshi Mochimaru, analyst with Mitsubishi UFJ Morgan Stanley Securities Co, said Toyota generally gives conservative forecasts and the numbers are not a surprise.
"Production recovery is going faster than initially expected. But all the auto makers are making faster-than-expected recoveries."
Mochimaru said production may be recovering even faster at rival Nissan Motor Co, and that Toyota faced an even playing field in competing against rivals.
Toyota reiterated that a complete global production recovery won't happen until November. Even with a recovery, Toyota is expected to lose its spot as the world's top-selling auto maker to General Motors Co this year because of the disasters.
Executive Vice President Satoshi Ozawa brushed off fears about slipping from the top. "There is absolutely no importance in being No. 1," he told reporters. "Our vision is to make good cars and make customers happy."
Toyota is now expecting to sell 7.24 million vehicles for the fiscal year through March 2012, down from 7.31 million vehicles in the previous year.
For the January-March period, Toyota sold 1.79 million vehicles worldwide. That was fewer than the 2.22 million vehicles GM sold and fewer than No. 3 auto maker, Volkswagen AG of Germany, at 1.99 million.
Toyota has seen vehicle sales fall in North America, Japan and Europe, although it has had robust sales in other regions, such as the rest of Asia, Africa and South America. Toyota is especially struggling in the United States, where its May sales fell 33 percent from a year earlier to 108,387.
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