Kyodo News reports that Toyota Motor Corp. is likely to further revise downward its group earnings projections for the second half of the current fiscal year and report an operating loss of about ¥100 billion (US$1.12 billion) in the October-March period.
The expected downward revision stems from exacerbating falls in global auto sales and the yen’s continued appreciation against the US dollar, the sources said. Toyota lowered its earnings estimates for the second fiscal half in early November. At that time, Toyota anticipated a group net profit of 550 billion yen [US$6.159 billion], down 68.0 percent from a year before, and an operating profit of 600 billion yen [US$6.719 billion], down 73.6%, on sales of 23 trillion yen [US$258 billion], down 12.55 percent.
The November figures were revised downward from the initial estimates—a net profit of 1.25 trillion yen [US$14 billion], an operating profit of 1.6 trillion yen [US$18 billion] and sales of 25 trillion yen [US$280 billion].
Toyota has assumed a foreign exchange rate of 100 yen against the dollar for the October-March period, but the dollar has fallen to below 90 yen due partly to concern about the future of the troubled US automakers.