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Toyota quarterly results: back in the black

Toyota quarterly balance sheet
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Sales increased by 10.2 percent to 5.3 trillion yen. Despite the unprecedented recall of millions of cars due to defective accelerator pedals, T oyota on the forecast for the full fiscal year 2009/2010, which will run until March 31, and now expects a net profit of 80 billion yen.

Despite the unprecedented recall debacle due to sticking gas pedals, the Japanese auto giant Toyota sees itself on its way back to profitability. According to Toyota, for example, at the end of the fiscal year running until March 31, the bottom line is a profit of 80 billion yen (632 million euros) instead of previously expected losses of 200 billion yen, thanks to aggressive cost reductions and high demand for hybrid cars.

In the previous year, Toyota had run in a deficit of 437 billion yen. Nevertheless, even with the third increase in its annual forecast, Toyota looks pale compared to rivals such as Honda . In addition, it is uncertain how the recall of millions of cars will continue to affect. In the forecast for the end of the fiscal year, the estimated costs of the recall campaign because of the accelerator pedals are taken into account, said Toyota director Takahiko Ijichi. However, possible costs as a result of the new complaints about problems with the new Prius hybrid are not yet planned. The company left it open whether there would be a recall here as well.

Toyota estimates the financial impact of the debacle over the accelerator pedals and floor mats at up to 180 billion yen for the current fiscal year. This includes 100 billion yen in costs to carry out the recalls. In addition, there would be the impact on business operations as a result of falling sales by 70 to 80 billion yen. Global sales are expected to decrease by 100,000 cars, especially with a focus on Europe and North America, it said. However, analysts warn that the debacle could continue to affect the next few months. One could not foresee the consequences for the coming financial year, said Ijichi.

The Toyota Group, which also includes the small car manufacturer Daihatsu Motor and the truck manufacturer Hino Motors are now anticipating global sales of 7.18 million vehicles in the current fiscal yearof the previously targeted 7.03 million. In operational terms, the loss should also be reduced to just 20 billion yen, after previously assuming a loss of 350 billion yen. Sales will amount to 18.5 trillion yen instead of the previously estimated 18 billion yen. That would be a decrease of 9.9 percent compared to the previous year.

Accelerator recall: US government with more moderate tones

Also in relation to the Accelerator-Pedal-Recall the headwind for Toyota in the USA is easing. US Secretary of Transportation Ray LaHood proposes more moderate tones towards the breakdown-plagued automaker Toyota. 'They are doing everything they can to get the pedals in order,' he told journalists in Washington on Wednesday. The group is aware of the seriousness of the situation. “We have regular meetings with Toyota.”

The world's largest car manufacturer orders millions of cars to the workshops because of sticking gas pedals. Before a House Committee, LaHood called for drastic measures: 'If anyone owns such a car: stop driving and take it to a Toyota dealer.' The share of the Japanese company then plummeted.

'What I said was probably misleading,' LaHood later admitted to the journalists. 'What I meant, if you own one of these cars or if you have any doubts, take it to the dealer.' He himself will call Toyota boss Akio Toyoda in the coming days. 'We will continue our investigations.'


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