Toyota Motor to Report Operating Profit, Not Loss It Forecast, Nikkei Says
Toyota Motor Corp. will probably report as much as 50 billion yen ($531 million) operating profit for the year ended March 31, Nikkei English News reported, citing cost reductions and gains from a weaker yen. That compares with a Feb. 4 forecast for a 20 billion yen operating loss by the world’s largest automaker.
Toyota spokeswoman Ririko Takeuchi declined to comment on the Nikkei report. The automaker’s earnings will be announced on May 11, she said.
The maker of Corolla sedans may post 35.2 billion yen in operating profit for the year, according to 22 analysts surveyed by Bloomberg News. Net income, forecast by Toyota at 80 billion yen, may total 112 billion yen, according to the survey.
Toyota’s earnings for the year started April 1 may be eroded as the automaker deals with as much as $2 billion in lost sales and warranty repairs after recalling more than 8 million vehicles globally. The world’s biggest automaker faces at least 180 consumer and shareholder lawsuits seeking class-action status, and at least 57 individual suits claiming personal injuries or deaths caused by sudden acceleration incidents.
Earlier this week, Toyota recalled its Lexus GX 460 SUV and agreed to pay a record $16.4 million U.S. fine, further damaging its reputation for safety under President Akio Toyoda. The automaker’s credit rating was cut by Moody’s Investors Service on Thursday, and Fitch Ratings said it may also downgrade Toyota as the recalls devastate profit.
Toyota shares fell 0.8 percent to 3,570 yen in Tokyo on Friday.
To contact the reporter on this story: Makiko Kitamura in Tokyo at mkitamura1@bloomberg.net
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