Toyota World

Toyota estimates US$8.6 billion yearly loss as sales slip

Posted on July 10, 2009 with No Comments

Toyota Motor Corp, the world’s major automaker, predicted an anticipated yearly loss of $8.6 billion as sales collapse. This has led to more than a dozens of its factories not used. Toyota recorded a $6.9 billion loss for the January-March fourth quarter and thereby reducing its yearly dividend for the first time since 1994.
The global depression has battered demand for cars and has hit Toyota very badly. This led to its fall from rapid expansion to overcapacity nearly overnight. The Japanese giant recorded its first-ever consolidated operational loss last year since it posted a record profit the year before. On a net base, Toyota has predicted an annual loss of 550 billion yen.
Toyota said it anticipated its global sales to decrease by approximately 145 to 6.5 billion yen in 2009/10. It estimated 830 billion yen in capital expenditure which is 1.3 trillion yen less than it was a year earlier.