Toyota profits forecast goes up with recovery

Published:  10 Feb at 6 PM

Carmaker Toyota has raised its annual profits forecast, stating its recovery is on target following the blow of the Japanese tsunami, the strong yen and Thai floods. The company made a 80.9 billion yen profit ($1.05 billion; £660 million) between October - December, a drop of 13.5%.

However, it raised its yearly profit forecast to 200 billion yen from 180 billion yen as it maintains efforts to slash costs. It also raised its yearly sales predictions to 7.41 million vehicles.

The firm had previously estimated 7.38 million sales for the year to March 31. The company has begun a second term at its Mississippi-based plant, where it manufactures the Corolla, as it gears up its production.

Takahiko Ijichi, who is senior managing officer at Toyota, said the firm remains committed to improving its earnings structure via various cost reduction tactics as well as maintaining the production recovery from the disasters in Thailand and Japan Earthquake.

In 2011, the company lost its title as the globe’s largest carmaker, with its net sales of 7.95 million vehicles (down 8%), lagging behind General Motors (9.03 million vehicles) and Volkswagen (8.16 million vehicles).

The company calculates the disruption caused by the floods in Thailand, where its components are manufactured, caused a lost output of 240,000 cars, just as it had started to recover from March's tsunami.