12 Apr 2009,
TOKYO: Toyota Motor Corp's operating loss could balloon to over 500 billion yen ($5 billion) in the year to March 2010, as the global economic crisis hits car sales, the Nikkei business daily said on Sunday without citing sources.
Sales of automobiles could tumble to about 6.5 million units during the current year, falling 7 million units for the first time in six years, Nikkei said. A survey of 19 brokerages by has operating loss at the world's biggest automaker expanding to a median 550 billion yen in the current year, from an estimated 450 billion yen in the year ended last month.
Analysts say the outcome will depend on the exchange rate, the global vehicle demand and how much Toyota will be able to reduce its costs.
It would be the second straight operating loss, as the company has already warned that it expects an operating loss of 450 billion yen, its first ever, for the fiscal year to March 31.
Revenue for the current year is expected to fall to around 20 trillion yen, down from an estimated 21 trillion yen for the year before, the Nikkei said.
Toyota group auto sales are now estimated at 6.5 million vehicles for the fiscal year just started -- which, if confirmed, would be the first time they have fallen below seven million units, it said.
That forecast is mainly due to a delay in recovery of the US auto industry, with the Japanese and European auto markets also expected to remain stagnant, and the impact of a strong yen against the dollar and the euro.
A strong yen lowers the competitiveness of Japanese products overseas.
Toyota overtook General Motors last year to become the world's top-selling automaker, but only because the US giant's sales fell faster than its own.
The Japanese company has moved to lower production, cut jobs and appoint a new president from its founding family in response to the crisis, its biggest ever.
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