The Nikkei reports that Toyota Motor Corp.’s group operating loss for the year ending March 31 is likely to jump to ¥400 billion (US$4.5B) from the ¥150 billion it projected last month (earlier post).
With the global economy quickly weakening, the automaker has been unable to halt the slide in auto sales and is heading into its first net loss since the year ended November 1963, when it started publishing net results. Sales are expected to undershoot its previous forecast of 21.5 trillion yen [US$329 billion], which would have been an 18% drop on the year.
Toyota group firms see their own earnings sharply deteriorating because of output reductions by the parent. As a result, their contributions to the automaker’s consolidated profits are expected to decrease.
Toyota has filed a shelf registration of ¥200 billion (US$2.2 billion) in straight bonds, with issuance expected as the current fiscal year ending March 31. The funds would be used mostly for capital spending on development of technologies and new products.