Toyota expected to report first loss in 70 years

Proving that no company is insulated from the current financial crisis Toyota Motor Corp. will reportedly file their first annual loss since the company's first year in business. Loss of sales, and a strong Yen are seen as the key problems with this year's report. The 70-year-old company last posted a loss in 1937-38.

Despite making a 140 billion Yen ($1.57 billion) profit in the first half of the year, currency fluctuations took a toll on the company. As the value of the Yen rose, the value of each overseas sale went down. This was especially problematic as the US Dollar has been on a downward slide most of the year. Currency losses for the first six months were in the 300 billion Yen ($3.38 billion) range.
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vman1013 - 12/19/2008 3:23:01 PM

+1 Boost

its more like $28b in cash and marketable securities from their 9/30/08 financial statements.

theoptimisticpessimist - 12/19/2008 8:16:41 PM

+1 Boost

Gee, whos to believe, vman1013 quoting numbers from the annual report or truthpursuit making them up.

lexworld - 12/19/2008 11:20:25 AM

+1 Boost

Here we go folks, let's wait and see how master Yoda strategicially deals its hand in the lost profit crisis. Trust me, I'am very optimistic.

truckman - 12/19/2008 1:18:29 PM

0 Boost

The Japanese government has bailed them out before.

PlanB - 12/19/2008 11:58:28 AM

+3 Boost

Even the mighty Toyota couldn't escape the perfect storm that makes up this horrible global economy.

inspirion7 - 12/19/2008 12:18:08 PM

+4 Boost

Keep in mind, the Big Three didn't loose money in their first 70-80 years as well. Their lost began to happened in the late 80's, almost a century of profits.

kpaxx - 12/19/2008 12:25:47 PM

+1 Boost

And remember they have not been losing money because the japanese government has been controlling the value of the yen.

mini22 - 12/19/2008 12:39:28 PM

+1 Boost

That's because the US has allowed the Japanese to control the Yen. Remember their whole marketing concept is that they (an now Korea) could offer better built,better quality car for the same money or less then you could get from the big 3.If the Yen gets too strong then you end up with a better car but for more money.What would a Corolla really cost if the Yen was not controlled by Japan. My guess is somewhere north of 20 grand.

E36er - 12/19/2008 1:06:12 PM

+4 Boost

Although the Japanese government somewhat regulates their currency (like our government)your argument doesn't hold any water. If the value of the Yen were the deciding factor, Mazda would not have been bought out by Ford back when Mazda was tanking. Having said that, things have changed lately since Ford sold it's majority shares back to the Japanese making Mazda a "Japanese" company again.

The world is a dynamic environment and the Big 3 wasn't up for the task. They got to complacent and arrogant about themselves. Remember, the American tax payer already bailed out Chrysler once back in the 80's because of the "Japanese." Well, it looks as though we haven't learned our lesson by the looks of things.

thetruth01 - 12/19/2008 2:50:54 PM

+6 Boost

I'm no economist. Maybe someone can explain this a little better. But the anyone who believes that only the Japanese govt manipulates their currency is delusional. The US federal govt has been keeping the dollar artifically low for the past several years. It may not have been good for the auto industry, but it helped stimulate the housing boom. But hey, look how that turned out.

neutral - 12/19/2008 4:53:35 PM

0 Boost

Toyota will be fine. They have the cash on hand and discipline to make the necessary adjustments to weather the storm.

Thats all this crisis really is... weathering the storm. People are upset because the big3 are getting a loan and laying workers off (Michael Moore said this repeated on Larry King and MSNBC). The pause of production in factories is just part of weathering the storm. God I hope this damn financial mess gets cleared up soon.

DieselRules - 12/20/2008 1:46:09 AM

+3 Boost

You feed at the SUV trough ... you get burned when SUV sales tank.
Toyota has smart people. How come they couldn't foresee this like everyone else could? Playing at the same level as Detroit is not a compliment!