Toyota announces 39% profit drop for last quarter
08-07-08, 07:23 AM
#1
Super Moderator
Thread Starter
Toyota announces 39% profit drop for last quarter
Posted on Thursday 7 August 2008
via motorauthority
Toyota announces 39% profit drop for last quarter
Hit hard by falling sales of large SUVs and pickups in the United States as well as the effects of rising fuel prices and a worsening economy, Toyota has announced that its operating profit dropped 39% for the quarter ending June 2008. Key reasons cited for the poor result include slowing sales, rising raw material costs and a strong yen.
This is the first time in nine years that Toyota has experienced a decline in profit. The company registered an operating profit of ¥412.59 billion ($3.8 billion), down from an operating profit of ¥675.43 billion ($6.15 billion) a year earlier. This was also the second straight quarter that its operating profit had fallen, reports Automotive News.
This week the company also announced that it will lay-off up to 800 workers at a plant in Japan that builds SUV models for its Lexus brand as well as the Highlander SUV (pictured). Lexus has performed much worse than Toyota, with sales dropping 25% in the U.S. in July alone.
Toyota hasn’t adjusted its 2008 sales forecast and is still expecting to sell 9.5 million vehicles this year, however this figure was downgraded less than two weeks from 9.85 million vehicles predicted at the start of the year.
With this level of sales, the company is estimating a net profit of ¥1.25 trillion ($11.43 billion) and an operating profit of ¥1.6 trillion ($14.6 billion) for the year ending March 2009.
Hit hard by falling sales of large SUVs and pickups in the United States as well as the effects of rising fuel prices and a worsening economy, Toyota has announced that its operating profit dropped 39% for the quarter ending June 2008. Key reasons cited for the poor result include slowing sales, rising raw material costs and a strong yen.
This is the first time in nine years that Toyota has experienced a decline in profit. The company registered an operating profit of ¥412.59 billion ($3.8 billion), down from an operating profit of ¥675.43 billion ($6.15 billion) a year earlier. This was also the second straight quarter that its operating profit had fallen, reports Automotive News.
This week the company also announced that it will lay-off up to 800 workers at a plant in Japan that builds SUV models for its Lexus brand as well as the Highlander SUV (pictured). Lexus has performed much worse than Toyota, with sales dropping 25% in the U.S. in July alone.
Toyota hasn’t adjusted its 2008 sales forecast and is still expecting to sell 9.5 million vehicles this year, however this figure was downgraded less than two weeks from 9.85 million vehicles predicted at the start of the year.
With this level of sales, the company is estimating a net profit of ¥1.25 trillion ($11.43 billion) and an operating profit of ¥1.6 trillion ($14.6 billion) for the year ending March 2009.
08-07-08, 10:31 AM
#3
Lexus Champion
Join Date: Sep 2006
Location: MIchigan
Posts: 2,025
Likes: 0
Received 0 Likes
on
0 Posts
Toyota has lot a lot money by making a big mistake with their forcasting of the new Tundra/Sequioa. Toyota devoted valuable resources o double production of the the large trucks and suvs and are now paying for it by having to move all production to one plant...and they have to shut down production for up to three months.
Toyota never really needed the Texas plant and are now paying for it. Toyota was so obsessed in showing what they could do, they never stopped to think if they should do it.
I don't think a HD model will sell well at all...way to late to the game.
Why are they still building the 4.7 for the Tundra when the 5.7 get the same mileage, better performance and does cost all that much more. No need for two rear axles.
I noticed the market wizard behind Lexus jumped ship a while ago and Lexus sales are on a 7 month downslide. 37 year veteran Jim Press left just as Toyota sales began to sag.
The bread and butter Toyota Corolla was late coming to market because they spend valuable time and resources on other things. I believe the Corolla put Toyota on the map and new one is not getting the praise it used to.
Also IMO Lexus car styling is digusting...I remember a time when Lexus and Toyota would sell no matter what because there was always something better about them compared to the competition. AND THERE IS NO POINT to having a LS-F Lexus.
All is well in Toyota land through. They have changed some management in the US and they are going to very soon restructure they NA operations..I think the next gen toyota's and Lexus's will be better than ever...
but please junk this "L-Finese" garbage....is that "Vibrant and Clear"
Toyota never really needed the Texas plant and are now paying for it. Toyota was so obsessed in showing what they could do, they never stopped to think if they should do it.
I don't think a HD model will sell well at all...way to late to the game.
Why are they still building the 4.7 for the Tundra when the 5.7 get the same mileage, better performance and does cost all that much more. No need for two rear axles.
I noticed the market wizard behind Lexus jumped ship a while ago and Lexus sales are on a 7 month downslide. 37 year veteran Jim Press left just as Toyota sales began to sag.
The bread and butter Toyota Corolla was late coming to market because they spend valuable time and resources on other things. I believe the Corolla put Toyota on the map and new one is not getting the praise it used to.
Also IMO Lexus car styling is digusting...I remember a time when Lexus and Toyota would sell no matter what because there was always something better about them compared to the competition. AND THERE IS NO POINT to having a LS-F Lexus.
All is well in Toyota land through. They have changed some management in the US and they are going to very soon restructure they NA operations..I think the next gen toyota's and Lexus's will be better than ever...
but please junk this "L-Finese" garbage....is that "Vibrant and Clear"
Last edited by pagemaster; 08-07-08 at 10:35 AM.
08-07-08, 06:54 PM
#4
Lexus Test Driver
Join Date: Jul 2008
Location: CA
Posts: 1,279
Likes: 0
Received 0 Likes
on
0 Posts
Toyota's latest designs are far better than anything coming out of Honda/Acura these days.
The new Accord is atrocious. And has anybody seen Acura's new "corporate grill"? Absolutely hideous. Don't get me started on the straight-from-bizzaro-land Pilot/Ridgeline/Element.
The new Accord is atrocious. And has anybody seen Acura's new "corporate grill"? Absolutely hideous. Don't get me started on the straight-from-bizzaro-land Pilot/Ridgeline/Element.
08-07-08, 11:03 PM
#5
Lexus Fanatic
iTrader: (20)
Those profits are still impressive in this market.
Stock has gone from 133 in Jan '07 to 86 now.
With a P/E of just 8.6 this might be a bargain of a stock for the long term.
Stock has gone from 133 in Jan '07 to 86 now.
With a P/E of just 8.6 this might be a bargain of a stock for the long term.
08-08-08, 07:33 AM
#6
Lexus Champion
Join Date: Dec 2002
Location: IL
Posts: 2,854
Likes: 0
Received 0 Likes
on
0 Posts
I think that all auto makers wish they had a crystal ball. GM/Ford/Chrysler make a bunch of cash on their trucks and Toyota figured they could too. Let's be honest, four years ago, people wanted big cars and automakers who were only making small ones were laughed at. Now it is the other way around. I honestly don't think that Honda (lucky winner in today's market place) knew this would happen - they just said "hey, we make 6 cyl cars or less and that's what we do". So today they are painted to as the being smart, but yesterday they were incompetent.
Thread
Thread Starter
Forum
Replies
Last Post
Overclocker
Car Chat
16
10-11-08 04:59 PM
Overclocker
Car Chat
2
10-09-08 07:31 AM