Toyota booked a first fiscal half operating loss of JPY136.9bn from 582.0bn yen profit a year ago but reported a surprise operating profit of JPY58bn for the July-September quarter, down almost 66% year on year. That has prompted it to reduce its full-year loss forecast.
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Net H1 income was a JPY56bn loss from JPY493.4bn of profit.
First half revenues fell 31.3% to JPY8.378 trillion.
Toyota said lower sales and the yen’s appreciation against the dollar and euro contributed to the JPY718.9bn fall in H1 operating profit.
Executive vice president Yoichiro Ichimaru said: “We continued to make improvements in our reduction in fixed costs and cost reduction efforts in the first half of fiscal year 2010. Demand-stimulating measures by governments worldwide have contributed to our revised targets for the full fiscal year.”
Consolidated vehicle sales for the first half fell 1.12m 3.13m units.
TMC revised its consolidated vehicle sales forecast for the full fiscal year ending 31 March 2010 from 6.6m to 7.03m units and also hiked its target for ’emergency profit improvement’ activities from JPY900bn to JPY1.250 trillion, reflecting the improved outlook for vehicle sales and the progress of variable and fixed cost improvements in excess of the previous plan.
The revenue forecast was were revised up to 18 trillion yen (from 16.8 trillion), operating income to a loss of JPY350bn (from JPY750bn) and net income to a loss of JPY200bn (from JPY450bn).
Ichimaru added: “We will continue to promote profit improvement activities across the company. However, the outlook for global vehicle demand still remains uncertain.”
Despite the second upward revision to its earnings outlook, Toyota remains alone among Japan’s top three automakers in projecting annual losses both on net and operating levels as it continues to be hit hard by a stronger yen.
”The government stimulus measures will expire in many countries by the year-end so we need to be cautious about the market outlook,” Ichimaru said at a press conference in Tokyo.
