Toyota cuts profit forecast; hit by Thai floods
Tokyo , December 9, 2011
Toyota Motor Corp on Friday forecast a 57 percent drop in operating profit this business year to 200 billion yen ($2.6 billion), down sharply from its prior forecast of 450 billion yen, hit by a stronger yen and widespread output disruptions from Thailand's floods.
The outlook from Japan's top automaker was well below a consensus forecast of 419 billion yen in a survey of 23 analysts by Thomson Reuters I/B/E/S.
Toyota projected a net profit of 180 billion yen for the year to March 31, 2012, down 56 percent from 408.1 billion yen last year and below its prior forecast of 390 billion yen.
Toyota withdrew its previous forecasts last month as Thailand's deadly floods cut off the supply of parts to factories in 10 countries. Between Oct. 10 and Nov. 25, Toyota lost output of 215,000 vehicles worldwide.
Thailand's disaster and Japan's earthquake and tsunami in March have hit Japanese automakers particularly hard. Unable to meet demand, Toyota is set to lose its crown as the world's top seller of automobiles to General Motors Co this year. It will also almost certainly trail Volkswagen AG.
Toyota's shares have fallen 18 percent year to date, in line with Tokyo's main Topix index. Honda has lost 24 percent. - Reuters