Toyota projects first operating loss since 1941 due to slumping auto demand and strong yen

http://www.newsday.com/business/sns-ap-as-japan-toyota,0,4924593.story

By YURI KAGEYAMA | AP Business Writer
10:20 AM EST, December 22, 2008

NAGOYA, Japan (AP) — Toyota Motor Corp. projected its first-ever operating loss since it began such reports, acknowledging Monday that its nine-year stretch of global vehicle-sales growth had stalled.

Crashing auto demand, especially in its key U.S. market, and the profit erosion from a surging yen proved too much for Japan's top automaker, which had been booming on the success of its fuel-efficient models, incluading the Camry sedan and Prius gas-electric hybrid.

Gloom dominated the annual news conference by Toyota's president, who in recent years had outlined ambitious expansion plans. This year, Toyota President Katsuaki Watanabe even refused to give a worldwide vehicle sales goal for 2009.

"The tough times are hitting us far faster, wider and deeper than expected," he told reporters at Toyota's Nagoya office. "This is an unprecedented crisis requiring urgent action."

Watanabe also blamed the strong yen, which has risen to 13-year highs against the dollar to about 90 yen recently.

Toyota lowered its net profit forecast to just 50 billion yen ($555 million) for the year through March 2009 — a tiny fraction of the 1.7 trillion yen it earned the previous fiscal year.


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It's not just "The Big 3" that are really hurting. They're just hurting more than Toyota, but even the fuel efficient, smaller, cheaper car company is having problems.

Re: Toyota projects first operating loss since 1941 due to slumping auto demand and strong yen

Interesting... I knew they were having problems when my friend's Mom told me she got a great deal and 0% on a 5 year loan on a Sienna! :-O (this was in PA)

Re: Toyota projects first operating loss since 1941 due to slumping auto demand and strong yen