- Feb 4, 2010
Report: In spite of recalls, Toyota raising annual forecast
Toyota had previously stated that it expected to incur a 350 billion yen loss (around $3.86 billion USD), and now it says it only expects to lose 20 billion yen ($220 million). Toyota's previous forecast was considered "excessive conservative," with outside brokerage houses predicting a loss of around 38 billion yen.
According to the news agency, Toyota says the updated forecast includes around 100 billion yen for recall costs (about $1.1 billion), and another 70-80 billion yen for lost sales (around $830 million), yet at the same time, Toyota says it expects to save some 1.59 trillion yen ($17.5 billion) via "emergency profit measures, an increase over earlier estimates.
Toyota stock has taken a drubbing over the two weeks since this wave of recalls began, with shares having been down as much as 23 percent – some $30 billion.
[Source: Reuters via Automotive News - subs. req.]