Toyota Reports Plunging Profits

Toyota slashed its earnings forecast for the full year on Thursday to less than a third of what it was the previous year, the latest sign that the global slowdown and strong yen are taking a toll on Japan's mighty automakers.

Mitsuo Kinoshita, the Executive Vice President of Toyota, said the company was wary of the global slowdown and the gyrations in currencies and stock markets.

Toyota which has been riding high on the success of its Prius hybrid and Camry sedan, also said that its July-September quarter net profit plunged 69 percent to 139.8 billion yen. That's about $1.4 billion US dollars.

Toyota cut its profit forecast for the year ending March 2009 to 550 billion yen, or about half of its earlier projection of 1.25 trillion yen, and about a third of the previous year's profit of 1.72 trillion yen.

Quarterly sales dropped 8 percent to 5.98 trillion yen from 6.49 trillion yen.

Although Toyota marked growth in Asia, South America and Africa, that wasn't enough to overcome the declines in Japan, North America and Europe.

The nose-dive was especially serious in North America, where its sales fell nearly 20 percent for the first six months of the fiscal year.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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  • by miss kate Location: lexington on Nov 6, 2008 at 02:14 PM
    my husband works for Toyota. and i can tell you that he rarely gets overtime anymore. the only time that he gets it is when something goes wrong on the line and they have to met the number of cars to be built for that day. they right now have about a month and a half in inventory. people are getting rid of big SUVs and downgrading. people still need new cars and many want to get a hybrid. which is hard right now because Toyata has a hard time getting the hybrid batteries. due tot he fact that big oil owns the patent on it. so Toyota has built a hybrid battery plant that is up and running in Japan. i hope i answered some of your questions.
  • by Susie Lu Who Location: Harrodsburg on Nov 6, 2008 at 01:30 PM
    Just wondering - Workers at Toyota (Georgetown) continue to work over-time. If sales are down - does that mean they're making less cars? If they're making less cars - why the overtime? Obviously from my questions, I'm no ecomonics/business major, but it seems odd that they're working overtime and sales are down. ALSO - if there's anyone out there that may be able to answer this one: Where do all the cars go once they leave the Georgetown plant? It seems they produce a ton of cars, yet the economy is in such a mess - is there really a high demand for these cars? Is there a certain percentage of the cars that are delivered throughout various parts of the nation? I would think these cars would just be stock piling on the lots. Thanks for any "insight".....


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