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Monday, April 13, 2009

Toyota’s Estimated Operating Loss may Increase for 2009-10 FY

At the beginning of the last fiscal year ending in March 31, it was reported that Japanese carmaker Toyota would face its first yearly operating cost in 70 years due to weak sales in the major markets throughout the world due to economic recession. In fact, Toyota suffered about 500 billion yen loss in the last fiscal year which ended in 31 March 2009. However, considering the current trend of the world market, it seems that Toyota could face a bigger loss in the current fiscal year ending on 31 March 2010, and it could go up to over 500 billion yen ($5 billion) loss. Toyota is expected to sell 6.5 million vehicles this year which will be the lowest volumes sold in six years.

On Tokyo Stock Exchange, Toyota’s share dropped significantly and it indicates the company’s tumultuous situation in global car market at this moment. Toyota Motor Corp. is still the market leader, but the way they are doing now, it seems the worst days are yet to come for the car market as well as for Toyota.

Related article:

bloomberg

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