NAGOYA, Japan (AP) - The global economic downturn and a surging
yen have hit Toyota in the bank account with the automaker projecting its first operating loss ever for the fiscal year through March.
Toyota's president says the drop in vehicle sales over the last month was "far faster, wider and deeper than expected."
Toyota is forecasting an operating loss of $1.66 billion through March, 2009 - the first such loss since Toyota began reporting such numbers in 1941. Operating income reflects a company's core business performance and does not reflect income taxes and certain other expenses included in net profit. Last fiscal year, Toyota had a significant operating profit.
Toyota slashed its earnings forecast and now expects it will barely break even for the year through March with a net profit of just $555 million.
Toyota has a production plant at Georgetown, Ky.
(Copyright 2008 by The Associated Press. All Rights Reserved.)