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  • Dec 12th 2011 at 10:30AM
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2011 has been a trying year for Toyota, as the earthquake and tsunami in Japan and the flooding in Thailand have conspired to slow vehicle production and cut into profits. Toyota lowered its profit forecast after the Japan disaster, and now Automotive News reports that the automaker is once again cutting expected profits by a significant margin.

Toyota has cut its forecast by 54 percent to reflect manufacturing issues resulting from the Thailand floods. The company is now expecting to make $2.3 billion in the fiscal year ending March 31. In a down economy, a profit is a profit, but this is a far cry from the $10 billion or more Toyota had been earning annually for years.

The revised profit forecast is reportedly less than half of what analysts have expected. The flooding alone will reportedly account for more than $1.5 billion in lost profits. Toyota has also cut vehicle production numbers from 7.6 million vehicles to 7.38 million.

While this is all bad news for Toyota, it's safe to say that the automaker remains in pretty good shape overall. After all, the Japanese automaker has suffered through two major natural disasters in a matter of six months, and it's still expecting a profit. When compared to the billions of dollars lost by Ford, General Motors and Chrysler due to man-made factors a few years ago, the situation at Toyota is hardly as dire as it could be.


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    • 1 Second Ago
  • 7 Comments
      carfan
      • 3 Years Ago
      if it's not Thailand, it's the tsunami or the earthquake HOW ABOUT KRAPPY LOOKING, boring,low quality cheap transport...This is a joke and it will sell less and less and less.....
      Zoom
      • 3 Years Ago
      I wonder at what point the global warming economic costs to businesses will far outweigh the regulations they fought so hard to prevent. While the Quake/Tsunami cannot be tied to GW, flooding, fires, drought, and severe weather in general will increase the likelihood that profits for corporations will take big hits in the coming years. For over 20 years now, corporations have been firmly against doing anything to combat CO2 emissions. I guess we're all going to pay the price.
        • 3 Years Ago
        @Zoom
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      Renaurd
      • 3 Years Ago
      If Toyota had low inventories why are they offering such large discounts. The Tundra in my hometown has $8,000 on the hood and everything in the dealership has large discounts. I don't get it, if people have been waiting for cars to buy, why would the lots be full.
      dukeisduke
      • 3 Years Ago
      What components does Toyota buy that are manufactured in the flood zone? The biggest known hit so far has been to the computer industry, as a lot of hard drive and hard drive component manufacturing capacity went underwater.
      tipdrip215
      • 3 Years Ago
      Toyota will be just fine. Their cars in general are starting to look a lot more appealing too, even the Camry is somewhat good looking now. A year ago, they were in a world of hurt, now I think they're starting to get back on track.
      • 3 Years Ago
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