Toyota
has announced that the company's net income for the fiscal year ending in March may decrease by as much as 31 percent compared to one year earlier. According to Automotive News, the Japanese automaker expects to earn around 280 billion yen, which is about $3.5 billion at current conversion rates. Last year, the company raked in 408 billion yen, or around $5.1 billion. The projected earnings are a far cry from what analysts had predicted. Bloomberg recently averaged the forecasts of 13 analyst estimates at 421.8 billion yen, or $5.3 million.

Toyota is facing a number of hurdles related to the shortfall. Chief among those are production delays tied to the earthquake and tsunami disasters that struck Japan in March of this year. Toyota has a higher level of Japanese production than rivals like Honda or Nissan, and it may take longer for the manufacturing giant to get back on its feet. As a result, Toyota is bracing for a sales decline tied to fewer available vehicles.

In addition, the yen is currently at its highest level against the dollar since the end of World War II, which is making the company's exports less and less profitable.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 20 Comments
      carfan
      • 3 Years Ago
      considering the junk that toyota is speweing out lately, they really should be in the RED. It is only thanks to MASSIVE advertising, nerds, and former hippy generation drug dissolved brain cells that toyota even made a profit.
      mikoprivat
      • 3 Years Ago
      $ 3.8 billion too much for toyota!!!
      Egon
      • 3 Years Ago
      Yes, a 31% drop does look like a bit of a faceplant. But still, there's more than a few other automakers that would love to see an earnings report with $3,800,000,000...on the plus side of the ledger.
        Egon
        • 3 Years Ago
        @Egon
        Oops. $3.5B...just a $300 million 'accounting error' :)
      GO MUSTANG
      • 3 Years Ago
      Well we helped them out a bit with our new mini van purchase, although i had been pushing for the Ody...
      peakarach1
      • 3 Years Ago
      $3.5 billion is still alots of money.
      Andre Neves
      • 3 Years Ago
      Again with the earthquake crap. I'm sure it had nothing to do with the barrage of recalls over the past year and degradation in quality/reception.
      Bruno Nekic
      • 3 Years Ago
      Toyota is focused and moving forward.
      TJ Wenger
      • 3 Years Ago
      If they are losing more and more on exports, does this mean another potential factory in the US? That could be a good thing? or is that not how it works?
      Zoom
      • 3 Years Ago
      No surprises here.
      timebecomes
      • 3 Years Ago
      FYI - should be "Billion", not Million: 421.8 billion yen, or $5.3 million.
    • Load More Comments