Toyota expects operating loss

[Ohio XB]

Originally Posted by phoon

I agree with you that greed by US corporate fat cats was the cause of the global collapse, but I think the point Ohio was making is correct that the aim of 9/11 was to have the same result. The unfortunate part is that the perpertrators of this disgusting act were allowed escape and instead the US government invaded Iraq ( a supposed easy target that hasnt turned into an easy target). Anyway, we also should remember that we are not doing it so tough here in Aus as a whole. The people of the USA are doing it tough along with the most of the rest of the world. It's not the average American that caused this, its the corporate fat cats and the government that would have seen this coming and did nothing in the name of capitalism. Dont the Govt understand that even that needs some restrictions for it to work. It also shows how far and reaching the health of the US economy is when a company like Toyota, who are without question one of the leanest manufacturers in the world can operate at a loss. I heard an expression that rings true, when the US economy sneezes, the rest of the world catches a cold. Regardless of what we or anyone thinks, the world requires that the US has a healthy economy.

Phoon, thanks, you are right on track. I was not blaming terrorists for the present state of the US economy. They didn't have what it takes to get their desired affect. I also agree with Peter B on the cause of the collapse; corporate CEO's and greed, as well as our government (Bill Clinton and others for the time period) deciding to make housing available to more people, even if they couldn't afford it. It was during the Clinton Administration that Sub-prime mortgages were created and approved to be executed. It was pointed out to the government several times that this was bad and had horrible consequences as a result coming from this. These warnings were even brought up from within the government.


Anyways, the US is the largest automotive market. Naturally when it tanks everyone selling cars here is going to be affected on a major scale.


BTW, the Amero is a movement by renegades as far as I am concerned. It is not something the US citizens want but I don't know about the US Gov.


Steve

[vztrt]

Toyota has reported a $9.1b loss in the quarter.

http://business.theage.com.au/busine...0508-axsg.html

Toyota posts $9.1b loss, forecasts more
May 8, 2009 - 4:30PM

Toyota Motor said on Friday it lost the equivalent of $9.1 billion in the final quarter and forecast increasing losses this financial year as sales continue to tumble, keeping dozens of its factories underused.

The world's biggest automaker reported a January-March operating loss of 682.5 billion yen, versus a 396.7 billion yen profit a year earlier but in line with a consensus estimate for a loss of 689 billion yen in a survey of 21 analysts polled by Thomson Reuters.

It lost a net 765.8 billion yen in the fourth quarter, down from a profit of 316.8 billion yen a year ago.

The global economic downturn that has battered demand for cars and pushed US rival Chrysler into bankruptcy has hit Toyota badly as it went from rapid expansion to overcapacity almost overnight.

Toyota posted its first-ever consolidated operating loss last year after a record profit the year before.

For the year to next March, the maker of Prius hybrid cars forecast an operating loss of 850 billion yen. A survey of 20 analysts by Thomson Reuters had previously given an average forecast for a 387 billion yen loss.

Shares of Toyota have risen 39% so far this year, underperforming a 47% rise on Tokyo's transport sub-index.

Reuters

[phillyc]

Originally Posted by vztrt

Toyota has reported a $9.1b loss in the quarter.

http://business.theage.com.au/busine...0508-axsg.html

Personally, i find Toyota's the most boring cars in the world. If that mammoth loss delays them from releasing ever blander stuff, then that is a good thing. They will come back fighting though...

[Ohio XB]

The global economic downturn that has battered demand for cars and pushed US rival Chrysler into bankruptcy has hit Toyota badly as it went from rapid expansion to overcapacity almost overnight.

The reporting always amuses me. For months I heard that the Big3's biggest problem is that they are building cars no one wants. When Toyota falls into the same sales hole is it only because of "battered demand for cars". I guess the battered demand for cars didn't hit the Big3 as bad?? Yeah, right.


Sure is hard to find anything about his in US news sources at the moment.


Steve

[vztrt]

Toyota's engine plant under threat, but rest of Altona plant will stay.

http://business.theage.com.au/busine...0509-ayq2.html

Toyota loss sparks fears for Altona plant
Tom Reilly
May 10, 2009

FEARS that huge global losses for Toyota could undermine the future of its Melbourne manufacturing base have been played down by the car maker.

A Toyota Australia spokesman said production of the new hybrid Camry was still on target to start at the beginning of 2010.

The world's biggest motor manufacturer announced a review of its international investment plans on Friday, sparked by it's worst ever annual loss of about 436.9 billion yen ($A5.82 billion) as car sales slump in the wake of the global financial crisis. The figures were far worse than expected and underlined the difficulties that have led Toyota to cut production at its sites around the world.

Spokesman Glenn Campbell said last night: "Toyota Australia is still in a strong position because we have secured the production of the Camry and we are still fully committed to that project.

As part of yesterday's financial results it was also announced that the company would accelerate its next generation of technologies, particularly its hybrid technologies and that's good for us locally. The new Camry will be the first hybrid produced in Australia and it remains a great car for the future."

But some doubts remain about the company's engine plant on the site, which employs 300 of Toyota's manufacturing workforce of about 3500 in the production of four-cylinder engines used in its current Camry model.

Toyota's executives in Melbourne have been trying to persuade the Japanese parent company that the site should continue engine production for the next generation of Camrys, which are planned for 2012.

That commitment would bring about $135 million in investment to Victoria, although there is fierce competition from other Toyota plants that produce Camry engines, including Toyota's low-cost Thailand plant, which would be able to export engines to Australia duty-free thanks to the free trade agreement.

Mr Campbell said: "The engine plant is still under consideration but the timing of the decision is not certain. Admittedly it will be much harder in the current environment to attract parent company investment for expansion projects as the global financial crisis has led to overcapacity."

Ian Jones, secretary of the vehicle division of the Australian Manufacturing Workers Union (AMWU), said he believed the engine plant would remain as part of the Altona operation.

"It's my view that the plant will get the investment that it needs but it's not uncommon for there to be some question marks over this given the financial environment. Yes, some workers will be concerned but there's nothing new in that for industry."

One motor industry insider said that although Prime Minister Kevin Rudd pledged $6.3 billion to the car industry last November in the New Car Plan for a Greener Future scheme, manufacturers would be hoping for further breaks in next week's budget.

[vztrt]

Some more info on the last quarter loss.

http://www.goauto.com.au/mellor/mell...2575B30011669A

Toyota spills red ink for first time

Japanese giant Toyota stung by volume plunge, exchange rates

By IAN PORTER 11 May 2009

TOYOTA chief executive Katsuaki Watanabe apologised to shareholders after admitting the slow reaction of directors to the world financial crisis was a factor in the group’s ¥560 billion ($A8.3 billion) loss in the 12 months to March 31.

It was the company’s first loss since 1950, and Mr Watanabe warned that worse was to come, predicting a loss of $A12.6 billion (¥850 billion) for the current financial year before income taxes, minority and equity interests were taken into account.

When the global financial crisis hit last year, Toyota had to suddenly change direction, from building new plants and production capacity around the world to sharply reducing production and laying off workers.

Production was slashed by 1.34 million units or 15 per cent, to 7.57 million units as plants were idled or slowed to bring output into line with demand. Revenues for the year slumped 23 per cent to $A284 billion.

“The negative impact was a consequence of the significant deterioration in vehicle sales, particularly in the US and Europe, the rapid appreciation of the yen against the US dollar and the euro and the sharp rise in raw materials,” Mr Watanabe said in a press release.

Later, at a press conference, he gave an even more frank assessment.

“Of course the external environment doesn't help, but we were lacking in the scope and speed of dealing with various problems and issues, and for that I am sorry," he told a news conference.

Toyota sales plunged around the world. In Japan, they were down 11 per cent to 1.95 million, in North America they were down 25 per cent, to 2.21 million.

European sales were off 17 per cent, to 1.06 million, and in Asia they eased five per cent, to 905,000 units. The rest of the world, which includes Australia, was down 7.5 per cent to 1.44 million cars and trucks.

The dire forecast for an even bigger loss in the current year was based on a weak outlook for the major economies of the world. The company expects sales to fall a further 14 per cent, or 1.06 million cars and trucks, to just 6.5 million units in the current year to March 31, 2010.

That would be 27 per cent below the 2007-08 total of 8.91 million.

Currency shifts also played a large part in the latest result. Toyota moved from booking a $A100 million gain on currency in 2008 to listing a loss of $A26.8 million

The group’s financing arm was not immune from the financial damage, continuing a loss of $A1.07 billion to the group result. Higher outstandings and improved margins were offset by provisions for bad debts and residual losses, mainly in the US.

Mr Watanabe said the company’s internal cost cutting programs would yield savings of around 800 billion yen or $A10.6 billion in the current financial year.

But he was not expecting a quick recovery in the largest western markets.

“It appears to take some more time before the financial markets in the US and Europe normalise and the global economy recovers.

“There is a rising concern for a further downside in the world economy caused by an even more vicious cycle of the financial crisis and the weakening of the real economy. The Japanese economy also has risks that the recession deepens further and lasts longer.

“In addition, the competition in the automotive market is more intense globally, as shown in the fierce competition with respect to compact cars and low-price cars, and the acceleration of development in technologies and introduction of new products while environmental awareness is growing throughout the world.”

US auto industry consultant Maryann Keller said that while the severe downturn had buffeted all auto-makers, even Honda Motor Co and BMW AG, Toyota had “some self-inflicted problems".

"They were on a mad tear to become number one, and as a result generated a lot of excess capacity,” she said. “They also have excess labor, as a result." Toyota has problems not just with its installed capacity, but the models it produces, said another analyst.

“(Japanese market) rival Honda Motor Company last week forecast a small profit for this year thanks to its relatively healthy motorcycle business,” said Koichi Ogawa, chief portfolio manager at Daiwa SB In vestments.

“Compared with Honda, (Toyota) has a lot of larger models and a lot of excess capacity globally," Mr Ogawa said. “By 2010, cost cutting and capacity reduction may be taking effect, so they could breakeven by then.”

[vztrt]

Toyota North America “no longer profitable” – report

http://www.caradvice.com.au/35613/to...itable-report/

Toyota North America “no longer profitable” – report

A report published in the Detroit News yesterday from the CEO of Toyota Motor Sales USA, Yoshimi Inaba, has revealed that the company’s operations in North America are “no longer profitable”.

Mr Inaba cites current market forces and “boring” cars as some of the reasons behind the brand’s downfall.

Following Toyota’s runaway success in the region over recent years the news comes after the announcement three months back of the company’s first-ever full year operating loss.

It seems that despite the Japanese manufacturer’s drastic cost cutting measures US sales were down 38 per cent for the first half of 2009, outpacing the overall market decline of 35 per cent.

Mr Inaba says that although the downtrodden economy is undoubtedly behind some of Toyota’s sales decline, he also blames the company’s current model lineup.

“Toyota is a good car but not exciting. Those are the comments we usually (or) always get,” said Mr Inaba.

Mr Inaba went on to say that Toyota’s future vehicles will be “more exciting and more nimble” when the company’s North American operations do return to profitability next fiscal year