Toyota's Earnings May Fall 20% This Year, Nikkei Says

Discussion in 'Stocks' started by ASusilovic, Apr 16, 2008.

  1. Toyota Motor Corp.'s operating profit may decline about 20 percent this fiscal year because of slowing U.S. sales and a stronger yen, the Nikkei newspaper reported.

    Japan's biggest automaker may have operating profit of 1.7 trillion yen ($16.7 billion) to 1.8 trillion yen on little- changed sales of 26 trillion yen in the year ending March 31, 2009, the Nikkei reported without saying where it got the information.

    Toyota gets more than half its operating profit from the U.S., where sales fell 10.3 percent last month as the subprime mortgage crisis crimped demand for Lexus LS and Avalon sedans. The yen has gained 9.7 percent against the dollar so far this year, eroding repatriated profits.

    ``Consumer demand in the U.S. has gone ice cold,'' said Yuuki Sakurai, who helps manage the equivalent of $41.5 billion at Fukoku Mutual Life Insurance Co. in Tokyo. ``Growth in emerging markets won't be able to cover that drop in earnings.''

    Toyota spokeswoman Shiori Hashimoto declined to comment. The company is scheduled to give a forecast for the current year on May 8 in Tokyo when it publishes results for last fiscal year.

    Toyota shares rose as much as 170 yen, or 3.5 percent, to 5,050 yen and traded at 5,040 yen as of 10:03 a.m. in Tokyo. The shares have dropped 30 percent in the last 12 months.

    20 % ? Outsch !:eek:
  2. 1) Suss---- the proper spelling is O-U-C-H. :)
    2) It's a good thing that guy doesn't work for Fukutu Insurance Company. :D