Toyota profits down 28pc in first quarter
Friday, 8 August 2008
TOKYO, Aug 7 (AFP): Toyota Motor Corp. today reported a 28.1 per cent slide in first-quarter net profits as a weak US economy, a stronger yen and rising costs put the brakes on its recent rapid growth.
Toyota, in a close race with General Motors for the title of the world's top automaker, did not deliver the profit warning that markets had feared, but kept its forecast for the first decline in annual earnings in nine years.
Japan's top automaker, a pioneer of petrol-electric hybrid vehicles, said net profit came to 353.66 billion yen (3.2 billion dollars) in the three months to June, dropping for a second straight quarter.
Operating profit tumbled 38.9 per cent to 412.59 billion yen as revenue declined 4.7 per cent to about 6.22 trillion yen.
Toyota executive vice president Mitsuo Kinoshita described the results as "severe", blaming a rapidly changing business environment including a weak US dollar and soaring raw material prices.
He said it would be tough for the automaker to achieve its goal of selling 10.4 million vehicles in 2009, saying the target was now under review.
Toyota recently cut its global sales target for 2008 to 9.5 million vehicles from 9.85 million.
Toyota sold 2.19 million vehicles in the first quarter, an increase of 1.1 per cent from a year earlier, helped by strong demand in markets such as Russia, Australia and the Middle East.
Vehicle sales in North America fell 4.3 per cent to 729,000 units as an economic slowdown and soaring prices at the pump weighed on consumer spending and put drivers off buying fuel- guzzling bigger cars and trucks.
In Europe sales tumbled 9.6 per cent to 301,000 vehicles.
Toyota, in a close race with General Motors for the title of the world's top automaker, did not deliver the profit warning that markets had feared, but kept its forecast for the first decline in annual earnings in nine years.
Japan's top automaker, a pioneer of petrol-electric hybrid vehicles, said net profit came to 353.66 billion yen (3.2 billion dollars) in the three months to June, dropping for a second straight quarter.
Operating profit tumbled 38.9 per cent to 412.59 billion yen as revenue declined 4.7 per cent to about 6.22 trillion yen.
Toyota executive vice president Mitsuo Kinoshita described the results as "severe", blaming a rapidly changing business environment including a weak US dollar and soaring raw material prices.
He said it would be tough for the automaker to achieve its goal of selling 10.4 million vehicles in 2009, saying the target was now under review.
Toyota recently cut its global sales target for 2008 to 9.5 million vehicles from 9.85 million.
Toyota sold 2.19 million vehicles in the first quarter, an increase of 1.1 per cent from a year earlier, helped by strong demand in markets such as Russia, Australia and the Middle East.
Vehicle sales in North America fell 4.3 per cent to 729,000 units as an economic slowdown and soaring prices at the pump weighed on consumer spending and put drivers off buying fuel- guzzling bigger cars and trucks.
In Europe sales tumbled 9.6 per cent to 301,000 vehicles.