Toyota Reports a 73% Drop In US Profits For 3rd Quarter: Forms Emergency Commitee

Net income will likely be 550 billion yen ($5.6 billion) for the year ending March 31, compared with an earlier forecast of 1.25 trillion yen, the company said today. The new forecast will be a 68 percent drop from the 1.72 trillion yen Toyota earned last year.

President Katsuaki Watanabe, 66, forecast the smallest profit in nine years as higher fuel costs and the credit crunch have pushed industrywide U.S. sales to the lowest level since 1983. Toyota, Japan's biggest carmaker, follows Honda Motor Co. and Nissan Motor Co. in predicting larger-than-expected drops in earnings.

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KZ258 - 11/6/2008 9:57:13 AM

+2 Boost

thats crazy

Agent009 - 11/6/2008 10:30:26 AM

0 Boost

They are dealing what the Europeans have had to deal with for quite a while.

Dwindling sales and strong exchange rate make thier products cost more.

If you notice lateley, all of the Japanese Companies are starting to mention profits are hurt by the Japanese government no longer keeping the YEN artifically low.

Now they really have to run lean and mean to keep up.

QuantumMatrix - 11/6/2008 10:43:00 AM

+4 Boost

Psst! Don't tell Huu76... He will pull all kinds of weblinks and sites out of his ass to defend his idol marquee.

lexusrox123 - 11/7/2008 9:00:02 AM

0 Boost

oops. i just told him...

Agent63 - 11/6/2008 2:01:06 PM

-2 Boost

Good thing they grew fast and made their money. I hope they don't cut any corners in terms of quality and reliability.

bestofallcad - 11/8/2008 12:23:21 AM

+1 Boost

You know they will since they have been doing it for awhile now. Lexus is a Toyota and Toyota is a Lexus. I can not even tell the two cars apart except for the name plate. Can you?

mini22 - 11/6/2008 2:07:29 PM

+4 Boost

They will have to cut production to deal in the slow down in demand. Bottom line is that Japanese auto companies are about to become much smaller. The competition from Hyundai is also hurting them.

abcd - 11/6/2008 2:51:55 PM

+2 Boost

Who cares what profits they`re making . I`m rather more interested what products ( cars ) they`re making .

vdiv - 11/9/2008 10:53:58 AM

+1 Boost

Arguably there may be a link between profits and product quality...

M35MT - 11/6/2008 4:22:48 PM

+1 Boost

Key thing here is they're still profitable. How many quarters, make that years - has GM/Ford posted Losses?

bestofallcad - 11/8/2008 12:21:19 AM

+1 Boost

Yea they are profitable, since they do not have the UAW bleeding them dry!!!!!

if the big three got rid of the union they would not have money issues either.

BozzorTheGreat - 11/6/2008 6:56:32 PM

+1 Boost

Toyota has been hurt by a skyrocketing yen and recent investements in trucks which should have just gotten into their stride but have been hit by skyrocketing fuel costs and a plunging economy. That said, Toyota's overall efficiencies should still see them through with less pain than others, but the reality now for the industry is something much worse than 1987...

kpaxx - 11/7/2008 8:35:06 AM

+1 Boost

I guess they had any easy time when the market was good. I am glad I don't have toyota stock!

lexusrox123 - 11/7/2008 9:00:36 AM

0 Boost

i'm glad i dont have ANY auto stock!

0to60 - 11/7/2008 10:23:51 AM

+1 Boost

VW wouldnt have been bad

vdiv - 11/9/2008 12:03:38 PM

+1 Boost

In the game of starvation, the fattest one survives...

Toyota's profits may be down a significant portion, but at least they are still making profits. Also for better or for worse, Toyota is much better at cutting corners than other car makers, and maybe this is why they have grown so much in the first place.

My speculation is that if GM is allowed to "merge" with Chrysler, then Ford will be seeking a partner, and Toyota is the best positioned to say yes, if not for the American market, certainly for the European.