Toyota to incur unconsolidated operating loss in FY 2008

NAGOYA, Dec. 19 Kyodo -
Toyota Motor Corp. is expected to report an unconsolidated operating loss in
the fiscal year through March next year amid a widening slump in global auto
sales and the yen's sharp appreciation against the U.S. dollar, sources
familiar with the matter said Friday.
It will be the first time that Toyota has reported an unconsolidated loss on a
full-year basis since fiscal 1949, the sources said.
But Toyota, which has Daihatsu Motor Co. and Hino Motors Ltd. under its group,
is likely to make a consolidated operating profit for fiscal 2008, although it
will be reduced substantially from the year before, they said.
Toyota is expected to announce its downward revisions to consolidated and
unconsolidated earnings projections next week.
In early November, Toyota revised downward its unconsolidated and consolidated
earnings projections for fiscal 2008.
On an unconsolidated basis, Toyota forecast a net profit of 510 billion yen,
down 55.2 percent from the year before, and an operating profit of 140 billion
yen, down 87.4 percent, on sales of 10.6 trillion yen, down 12.2 percent.
On a group basis, Toyota projected a net profit of 550 billion yen, down 68.0
percent from the previous year, and an operating profit of 600 billion yen,
down 73.6 percent, on sales of 23 trillion yen, down 12.5 percent.
Since then, Toyota has been experiencing a slump in sales of small vehicles,
which had been relatively strong compared with those of larger vehicles,
observers said. Auto sales in emerging economies, which had been robust, have
also weakened.
Toyota assumed a foreign exchange rate of 100 yen against the U.S. dollar for
the October-March period, but the dollar has fallen to around 90 yen due partly
to concern about the future of troubled U.S. automakers.
Every 1 yen of appreciation against the dollar trims Toyota's annual group
operating profit by about 40 billion yen.
==Kyodo
2008-12-20 00:01:50