ID :
44527
Fri, 02/06/2009 - 19:53
Auther :
Shortlink :
https://oananews.org//node/44527
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Toyota expecting 1st red ink in FY 2008
TOKYO, Feb. 6 Kyodo - Toyota Motor Corp. said Friday it will report a group net loss of 350 billion
yen for the 2008 business year to March, the first red ink since it began
releasing net data in 1963, as sales plummet amid the deepening global economic
crisis.
The forecast is a sharp reversal from its heydays until the previous business
year. The Japanese auto giant, which overtook General Motors Corp. as the
world's largest automaker in 2008 by sales volume, has enjoyed robust growth
until the previous business year, when it saw eight consecutive years of
increases in operating profit to an all-time high.
But this fiscal year, faced with sharply weakening demand and a stronger yen,
Toyota was forced to revise downward its earnings forecasts for a third time.
The projected 350 billion yen loss for fiscal 2008 compares with a net profit
of 50 billion yen projected by the automaker less than two months earlier and
contrasts with a record-high profit of 1.72 trillion yen in the previous
business year.
Toyota began releasing comparable net data from the business year which ended
November 1963.
Toyota also revised downward its sales target for fiscal 2008 to 7.32 million
units from 7.54 million units projected in December.
''We had a really tough time in the October to December period,'' Executive Vice
President Mitsuo Kinoshita said at a press conference, referring to a sharp
downturn in demand after the collapse of U.S. investment bank Lehman Brothers
Holdings Inc. last September.
''Since the Lehman shock on Sept. 15, the financial crisis has spread to hit
the real economy directly, including the consumer durables we make,'' he said,
adding the adverse impact had spread from the United States to Europe and the
rest of the world.
Kinoshita added that the downturn in the automaker's main markets of North
America, Europe and Japan had accelerated further this year, forcing Toyota to
revise its earnings targets downward again in such a short period.
In addition to weakening demand, Toyota said its earnings were also hit by the
yen's steep appreciation against other major currencies, which eroded its
overseas income when repatriated.
In the latest revision, Toyota expanded its operating loss projection from 150
billion yen forecast in December to 450 billion yen, with its sales projection
lowered 2.3 percent from the previous forecast to 21 trillion yen.
In fiscal 2007, Toyota recorded an operating profit of 2.27 trillion yen on
sales of 26.29 trillion yen, both all-time highs.
To cope with shrinking demand for vehicles, Toyota is rapidly cutting
production and temporary jobs.
In Japan, Toyota plans to reduce the number of nonregular jobs to around 3,000
by the end of March by not renewing workers' contracts, compared with the
average of 9,200 in the January to March period last year.
Kinoshita said Toyota does not plan to eliminate all nonregular jobs, but the
company remains undecided on what number of such jobs is appropriate as its
production plan has not been finalized.
As for permanent jobs, Kinoshita said Toyota has not implemented any layoffs
during the current economic crisis at home and abroad, and it is considering
introducing a ''work sharing'' scheme to maintain employment by sharing and
reducing workloads.
Toyota plans to either delay or review almost all projects aimed at expanding
production capacity or building new plants around the world.
But Toyota does not plan to close any of its existing plants, Kinoshita said.
For the April-December period of fiscal 2008, Toyota's net profit plunged 76.5
percent from a year earlier to 328.83 billion yen and its operating profit
dropped 88.2 percent to 221.52 billion yen on sales of 16.99 trillion yen, down
13.8 percent.
During the nine-month period, Toyota's global car sales fell by 494,000 units
from a year earlier to 6.09 million units.
Moody's Investors Service said earlier Friday that it has downgraded its
long-term senior unsecured debt rating for Toyota and its subsidiaries to Aa1
from Aaa, with a negative rating outlook.
The rating service agency said the action came after a downgrade review
initiated on Dec. 22, meaning Toyota's latest projection cut is not included.
Another major rating agency, Standard & Poor's, also lowered to AA-plus from
AAA its long-term corporate credit ratings on Toyota and its related entities.
==Kyodo
yen for the 2008 business year to March, the first red ink since it began
releasing net data in 1963, as sales plummet amid the deepening global economic
crisis.
The forecast is a sharp reversal from its heydays until the previous business
year. The Japanese auto giant, which overtook General Motors Corp. as the
world's largest automaker in 2008 by sales volume, has enjoyed robust growth
until the previous business year, when it saw eight consecutive years of
increases in operating profit to an all-time high.
But this fiscal year, faced with sharply weakening demand and a stronger yen,
Toyota was forced to revise downward its earnings forecasts for a third time.
The projected 350 billion yen loss for fiscal 2008 compares with a net profit
of 50 billion yen projected by the automaker less than two months earlier and
contrasts with a record-high profit of 1.72 trillion yen in the previous
business year.
Toyota began releasing comparable net data from the business year which ended
November 1963.
Toyota also revised downward its sales target for fiscal 2008 to 7.32 million
units from 7.54 million units projected in December.
''We had a really tough time in the October to December period,'' Executive Vice
President Mitsuo Kinoshita said at a press conference, referring to a sharp
downturn in demand after the collapse of U.S. investment bank Lehman Brothers
Holdings Inc. last September.
''Since the Lehman shock on Sept. 15, the financial crisis has spread to hit
the real economy directly, including the consumer durables we make,'' he said,
adding the adverse impact had spread from the United States to Europe and the
rest of the world.
Kinoshita added that the downturn in the automaker's main markets of North
America, Europe and Japan had accelerated further this year, forcing Toyota to
revise its earnings targets downward again in such a short period.
In addition to weakening demand, Toyota said its earnings were also hit by the
yen's steep appreciation against other major currencies, which eroded its
overseas income when repatriated.
In the latest revision, Toyota expanded its operating loss projection from 150
billion yen forecast in December to 450 billion yen, with its sales projection
lowered 2.3 percent from the previous forecast to 21 trillion yen.
In fiscal 2007, Toyota recorded an operating profit of 2.27 trillion yen on
sales of 26.29 trillion yen, both all-time highs.
To cope with shrinking demand for vehicles, Toyota is rapidly cutting
production and temporary jobs.
In Japan, Toyota plans to reduce the number of nonregular jobs to around 3,000
by the end of March by not renewing workers' contracts, compared with the
average of 9,200 in the January to March period last year.
Kinoshita said Toyota does not plan to eliminate all nonregular jobs, but the
company remains undecided on what number of such jobs is appropriate as its
production plan has not been finalized.
As for permanent jobs, Kinoshita said Toyota has not implemented any layoffs
during the current economic crisis at home and abroad, and it is considering
introducing a ''work sharing'' scheme to maintain employment by sharing and
reducing workloads.
Toyota plans to either delay or review almost all projects aimed at expanding
production capacity or building new plants around the world.
But Toyota does not plan to close any of its existing plants, Kinoshita said.
For the April-December period of fiscal 2008, Toyota's net profit plunged 76.5
percent from a year earlier to 328.83 billion yen and its operating profit
dropped 88.2 percent to 221.52 billion yen on sales of 16.99 trillion yen, down
13.8 percent.
During the nine-month period, Toyota's global car sales fell by 494,000 units
from a year earlier to 6.09 million units.
Moody's Investors Service said earlier Friday that it has downgraded its
long-term senior unsecured debt rating for Toyota and its subsidiaries to Aa1
from Aaa, with a negative rating outlook.
The rating service agency said the action came after a downgrade review
initiated on Dec. 22, meaning Toyota's latest projection cut is not included.
Another major rating agency, Standard & Poor's, also lowered to AA-plus from
AAA its long-term corporate credit ratings on Toyota and its related entities.
==Kyodo
