Toyota raises annual forecast, posts profit

Toyota Motor Corp said it raised its outlook for the financial year to March after a forecast-beating third-quarter.

Toyota raises annual forecast, posts profit

Toyota Motor Corp said its biggest ever safety recall would cost it up to $2 billion this quarter, but raised its outlook for the financial year to March after a forecast-beating third-quarter.

The world's No. 1 automaker Thursday reported a quarterly net profit of 153.2 billion yen ($1.7 billion) and cited stronger sales of the Prius and other "green" models, as well as a recovery in the U.S. and Japan. It reported a 164.7 billion yen loss in the same quarter a year earlier.

The results don't reflect the damage from the massive recalls linked to faulty gas pedals, announced Jan. 21. The suspension of U.S. sales of eight of its most popular models, repair costs for the recall and a consumer backlash are expected to undermine earnings in the current quarter and possibly into next fiscal year.

Toyota for the first time gave an estimate of the costs of the global recall at up to 180 billion yen ($2 billion), with 100 billion yen ($1.1 billion) for repairs and 70 billion yen ($770 million) to 80 billion yen ($880 million) in lost sales.

It said the recalls could dent global demand for Toyota models by 100,000 vehicles.

Toyota posted October-December operating profit of 189 billion yen, easily beating a 99 billion yen estimated by Thomson Reuters I/B/E/S. It was its strongest profit in six quarters.

Investors are now focused on how long and far the recall damage could go, with Toyota's sales in its most important U.S. market already falling 16 percent in January.

Toyota raised its forecast for group global sales to 7.18 million vehicles from 7.03 million, and also raised the amount of money it expects to save under emergency profit measures introduced earlier this year to 1.59 trillion yen from 1.25 trillion yen.


Agencies

Last Mod: 04 Şubat 2010, 14:52
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