Toyota Reports Pre-Recall Earnings Of The Last Quarter

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On Thursday, Toyota corporation reported its earnings before recalls in the last quarter of 2009 saying that the auto giant earned 153.2 billion yen, or $1.7 billion at current exchange rates, on 5.3 trillion yen in sales.

 

The above revenue gained before Toyota made its second recall to 2.3 million vehicles on January 21 which led to the suspension of eight models in the United States including the Camry and Corolla and in other countries in all over the world.

 

The net profit in 2009 last quarter is a nearly 10 billion yen rise from 164.7 billion in the same quarter of 2008.

 

According to the Japanese auto giant, North America is its largest market and Asia is among its fastest-growing markets. These markets help Toyota gain strong profits in its last quarter of business.

 

Current solutions of the corporation to recent gas pedal problems are now highly appreciated than what the company did in the past by analysts. According to Paul Migliorato, head of research at NamiNori, a research company specializing in Japanese equities in Honolulu, forecasts for the current fiscal year and next year as are mere guesses only when the company can be successful in handling current situation.

 

The earnings gained just a short time before Toyota made recall to millions of vehicle owners on January 21 which caused sudden acceleration to existing cars. Due to this recall, car sales as well as quality reputation of the company have been lowered.

 

Recently, the company also received reports about brake problems happening among its new Prius hybrids and another eight cars in North America. According to the US National Highway Traffic Safety, Prius owners in the United States sent around 135 complaints relating with the brakes.

 

Analysts notified Toyota that due to recent safety recall, the company's market share would hugely slow down in the United States. Accordingly, Japanese rivals such as Honda may exceed the auto giant.

 

A loss of about $1.6 billion dollars is estimated for the Japanese automaker through March, said Goldman Sachs. Since Jan.21 recall, Toyota has lost more than $25 billion. Whether the company can regain confidence from 2.3 million customers in the U.S. or not depends on its ability to solve the current safety issues.

 

In comparison with January 2008, this year the company has experienced a drop of 16 percent in car sales in the United States after suspending sales of eight models last week. Among which were the best-selling models Camry and Corolla.

 

Before posting profits of last quarter, the company's shares also fell 3.5 percent.

 

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MARTIN FACKLER and HIROKO TABU has 1 articles online

MARTIN FACKLER and HIROKO TABUCHI are journalists of the New York Times. They have written some articles together. The issues of Toyota is now hot in the United States. The two authors keep a close eye on pedal problems.

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Toyota Reports Pre-Recall Earnings Of The Last Quarter

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    Trademark Litigation- 2011/03/25 14:14:17 pm

    Here is a similar story TOKYO Toyota Motor said Thursday that it will restart production of its Prius and Lexus hybrid models next week, while Honda extended the shutdown of two of its factories until next month - illustrating how Japanese automakers are still struggling to recover from the country's devastating earthquake and tsunami. A major problem for all the automakers, including those outside Japan, is ensuring a reliable supply of parts from Japanese component makers. Shortages of an electronic sensor from Hitachi, for example, have led to slowdowns this week at Peugeot and Opel factories in Europe.

This article was published on 2010/02/04