Toyota has issued new guidance for its expected financial performance revealing that it expects a big decline in net profit in the current fiscal year as it reels under the impact to its operations of the Great East Japan Earthquake.
The carmaker forecast FY2012 net profit of 280bn yen for the year to the end of March 2012, down 31% on the 408bn yen it made last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It said revenues would fall slightly to 18.6 trillion yen in FY2012.
Much of the hit to Toyota’s performance is expected in the first half of the 2012 financial year. An operating income loss of 120bn yen is projected by Toyota for the first half of FY2012, with the full year recovering to a 300bn operating profit. In the statement Toyota warned of risks associated with rising oil prices and continuing high unemployment in the US and Europe, despite continued expansion to markets in the emerging economies – especially China and India.
Toyota also said that the damage caused by the Great East Japan Earthquake will continue to significantly affect the Japanese economy, and the ‘momentum of Japan’s economic recovery
will weaken for the time being’.
Toyota said it expected to sell 724,000 vehicles during the full year, with 292,000 of those sold in the first six months.
