Toyota faces historic loss amid slump
23-12-2008
Japan's biggest carmaker Toyota has forecast its first annual loss in 71 years due to plummeting sales and a surge in the value of the yen. The country also posted a trade deficit of US$2.5 billion in November as exports fell at a record rate. Toyota said it expected a loss of 150 billion yen in yearly operating profits from its core operations. The carmaker recorded an operating profit of 2.27 trillion yen last year. Toyota said it still expected to make a profit on a net level for the year ended March but has cut its forecast sharply to 50 billion yen, down from a previous estimate of 550 billion yen. It is the second profit warning by Toyota in less than seven weeks. The latest estimate is far lower than its net profit of 1.7 trillion yen earned the previous year. Japan has reported a record fall in exports - a trade deficit of US$2.5 billion in November. That's in contrast to an US$8.8 billion trade surplus a year ago. Japanese exports tumbled 26.7 percent from a year earlier -the steepest drop since 1980. Imports have also shrunk 14.4 percent, to US$62 billion, on lower oil prices - the first decrease in 14 months. The country has previously enjoyed large trade surpluses because of demand for Japanese cars and other goods, but the recent world economic downturn, and a strong yen, have led to a significant drop in Japanese exports.
