Report: In spite of recalls, Toyota raising annual forecast

Report: In spite of recalls, Toyota raising annual forecast

Filed under: Recalls, Safety, Toyota, Earnings/Financials

Despite internal predictions that its current throttle-related recall costs may dent company coffers by up to $2 billion this quarter, Toyota has raised its projections for the fiscal year ending in March. That's according to Reuters, who note that the increase comes after the automaker beat its third quarter estimates.

Toyota had previously stated that it expected to incur a 350 billion yen loss (around $3.86 billion USD), and now it says it only expects to lose 20 billion yen ($220 million). Toyota's previous forecast was considered "excessive conservative," with outside brokerage houses predicting a loss of around 38 billion yen.

According to the news agency, Toyota says the updated forecast includes around 100 billion yen for recall costs (about $1.1 billion), and another 70-80 billion yen for lost sales (around $830 million), yet at the same time, Toyota says it expects to save some 1.59 trillion yen ($17.5 billion) via "emergency profit measures, an increase over earlier estimates.

Toyota stock has taken a drubbing over the two weeks since this wave of recalls began, with shares having been down as much as 23 percent - some $30 billion.

[Source: Reuters via Automotive News - subs. req.]

Report: In spite of recalls, Toyota raising annual forecast originally appeared on Autoblog on Thu, 04 Feb 2010 10:28:00 EST. Please see our terms for use of feeds.



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