Hold On: Toyota Expecting Profits To Plunge

Rounding out a bleak earnings season for automakers, Toyota Motor Corp. is expected to report a steep drop in quarterly profits Thursday because of slumping U.S. auto sales.

Unfavorable currency trends also weighed on the Japanese automaker, according to analysts who forecast its operating earnings may be down more than 40 percent for the three months to June 30.

Toyota previously cautioned investors that profit for the fiscal year that began April 1 would fall for the first time in seven years, to 27 percent below last year's record level of $15 billion.

 

Targa - 8/6/2008 3:23:04 PM

+1 Boost

This is actually kind of surprising. I know the economy is bad but I figured all those "knee-jerk must sell the gas guzzler for a Prius or Corolla" people would help them out.

w209w114 - 8/6/2008 3:43:02 PM

+8 Boost

Toyota makes plenty of gas guzzling vehicles too.

holmstar - 8/6/2008 3:53:24 PM

+3 Boost

MT: you're unbelievable... do you actually get paid by toyota to sit on here an spew this stuff?

Agent009 - 8/6/2008 4:51:21 PM

+9 Boost

MichaelTaylor- While I think you are sincere you need to read a bit more. a while back for example Toyota sent out a press release touting the latest ALL GREEN manufacturing facility.

sounds great right. they went on to state all of their plants will be as green renewing thier commitment to being green.

FANTASTIC!!!

Until I did the research and found All of GM and Ford plants in the US met that level 3 years prior without a single press release on the topic.

Some people toot their horns, while others simply do what is right.

Agent63 - 8/7/2008 8:47:41 AM

+1 Boost

MT: " Everything I say can be proven. Toyota brought us the Prius and hybrid Lexus products for example, a clear indication of how much they care about the environment. No other manufacturer has even done this. "

I don't think they care as much about the environment as you think they do. It's all about making money. You're obviously not business minded my friend. It's all about profits!

Agent009 - 8/6/2008 4:47:02 PM

+1 Boost

A bit more detail:

Toyota Motor Corp. said the company will set aside major reserves for its first quarter to cover losses from vehicle leases in the U.S., making it the latest global auto maker to be hit by plummeting value of used cars as gas prices rise.

"We are going to have to make large provisions," a Toyota spokesman said. He declined to comment on how much those charges might be. Toyota on Thursday will report its fiscal first-quarter results for the period ended June 30.

sector - 8/6/2008 5:19:22 PM

-1 Boost

Toyota made 1.8 billion in profits in the first quarter, they needn't worry quite yet.

w209w114 - 8/6/2008 5:29:44 PM

+1 Boost

Wasnt this the same company that was expecting record sales and profits for 2008 just months ago??? Looks like the guys there only care about one thing, the board of shareholders and what they want to hear.

I predicted that this would happen last year, and sure enough here it is today.

0to60 - 8/6/2008 7:37:42 PM

0 Boost

Toyota and many other companies did not appropriately prepare for this economy. Gas prices have been high for a while and there is no reason why they shouldnt have pumped out enough prius's by now to make it among the best selling vehicles. Every toyota dealer is sold out here. All 6 of them! That was much of their profit loss right there. Additionally they run low on small fuel efficient cars. Why shouldthat be the case if they have had so many years to prepare as gas prices started rising years ago. fire their risk analyst immediately

enthusiastx11 - 8/6/2008 9:14:19 PM

0 Boost

profits have dropped 40% due to discounting as sales have dropped much less than that...

again, get to know your facts huu.

enthusiastx11 - 8/6/2008 9:17:31 PM

0 Boost

sales projections for the year are down from 9.85million units to 9.5million. so projected volume for the year is down about 4%.

enthusiastx11 - 8/6/2008 9:18:56 PM

-1 Boost

so to summarize for you since you seem to be just a little slow...

volume down 4%, profits down 40%.

DrFill2009 - 8/7/2008 8:22:57 PM

+1 Boost

Sounds like they made $3 Billion instead of $4 Billion for the quarter (They made $15 Billion last year).
Times are tough. I don't know if they'll make it
DrFill