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Toyota losing money

Discussion in 'Business & Economics' started by top gun, Jul 11, 2009.

  1. top gun

    top gun New Member

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    Without Union workers Toyota has problems too!

    But they are very smart and going to try to jump ahead by accelerating development of new product line-ups focused on hybrid and compact vehicle.

    He also said the company will focus on building up its green technologies, including biofuels and fuel-cell vehicles.

    This year it will release three new hybrid models overseas and four in Japan. These will include the next-generation Prius later this month and a new Lexus hybrid in July.


    Toyota in $7.7 billion quarterly loss, forecasts fiscal year loss
    Japanese automaker sees more hard times ahead, eventual recovery in 2010


    HONG KONG (MarketWatch) -- Toyota Motor Corp. on Friday reported a $7.7 billion quarterly loss, forecast another loss for the current fiscal year and pledged to accelerate cost cuts and expand its hybrid vehicle line-up.

    The world's largest carmaker by sales reported a net loss of 765.8 billion yen ($7.7 billion) in the fiscal fourth quarter ended March 31, compared to a 316.8 billion yen profit a year earlier, Toyota said Friday in a statement.

    Expectations were for a loss of 746.2 billion yen, according to the mean forecast as compiled in a survey by Thomson Reuters.

    The quarterly loss was among the largest ever booked by a Japanese manufacturer, and even was worse than General Motors' $6 billion loss for January to March.

    Toyota's troubles are considered a barometer for the global industry and bode ill for other Japanese car makers, many of which are due to report next week. Nissan Motor Co. will report annual results Tuesday.

    Toyota cut its full dividend 29% to 100 yen a share, reportedly the first time it has ever reduced the annual shareholder payout. Toyota pays dividends every six months, and last year's combined payment amounted to 140 yen.

    Toyota also said Friday it posted a net loss of 437 billion yen ($4.4 billion) for the fiscal year ended March 31, on net revenue of 20.53 trillion yen. A year earlier, the automaker recorded a profit of 1.72 trillion yen and net revenue of 26.29 trillion yen.

    On average, analysts had expected the company to suffer a loss of 350 billion yen, according to data from FactSet Research.

    Toyota president Katsuaki Watanabe said Friday the company suffered a "significant deterioration" in sales as the global crisis hammered consumer confidence and a stronger yen made its products more expensive overseas.

    He also cited higher raw materials prices as a major factor. Vehicle sales for the year were down 22% from the prior year.

    Toyota's shares ended 1.5% lower in Tokyo trading Friday ahead of the after-hours release.

    The shares have risen 29% in the past three months but are down 27% from levels 12 months ago.

    Toyota's annual operating loss fell to 461 billion yen. It saw operating income of 2.27 trillion yen in the previous year.

    In February, it had forecast an operating loss of 450 billion yen, a net loss of 350 billion yen and net revenue of 21 trillion yen for the year. That itself was a revision December forecasts for an operating loss of just 150 billion yen and a net income of 50 billion yen. A month before that, the auto giant had been looking for a profit of 550 billion yen.

    But Watanabe also said Toyota plans to accelerate development of new product line-ups focused on hybrid and compact vehicle.

    This year it will release three new hybrid models overseas and four in Japan. These will include the next-generation Prius later this month and a new Lexus hybrid in July.

    Watanabe said the company still views the biggest growth in resource-rich and developing nations and said it will continue to focus efforts in building market share in these regions.

    He also said the company will focus on building up its green technologies, including biofuels and fuel-cell vehicles.

    Myra P. Saefong is MarketWatch's assistant global markets editor, based in Tokyo.

    Chris Oliver is MarketWatch's Asia bureau chief, based in Hong Kong.
     
  2. PLC1

    PLC1 Moderator Staff Member

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    I'm not sure that having or not having a union is much of a factor. Of course, Toyota isn't doing as well as it was a couple of years ago, nor, hopefully, as well as it will be doing a couple of years from now. No manufacturer is doing really well just now. General Motors is probably at the back of the pack despite having had a massive cash infusion from Uncle Sam.

    Check out Consumer Reports (not Consumer Guide) and see for yourself why GM is not doing well. How many of their vehicles have an above average mark for reliability? That is a matter of engineering and development, not whether the workers do or don't belong to a union.

    GM should have been allowed to quietly declare bankruptcy. The national debt would have been a little bit smaller, at least, and the slack would have been taken up by the rest of the industry.

    We are getting along just fine without Studebaker and DeSoto, aren't we?
     
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