Toyota said in a statement it was making the cut due to a soaring yen 'as well as a review of sales plans following a faster than expected contraction of the auto market.' -- AP
NAGOYA - TOYOTA Motor Corp said on Monday it forecast a first-ever operating loss in the year through March as the global economic crisis hits the auto industry hard.
'We are facing an unprecedented urgent situation,' Toyota president Katsuaki Watanabe told a news conference.
Japan's top automaker said it expected an operating loss of 150 billion yen (S$2.45 billion)) for the financial year, the first loss since it started reporting annual earnings in March 1941.
Toyota said in a statement it was making the cut due to a soaring yen 'as well as a review of sales plans following a faster than expected contraction of the auto market.'
Toyota said it still expected to make a profit on a net level but cut its forecast sharply to 50 billion yen, down from a previous estimate of 550 billion yen.
The automaker has enjoyed hefty profits in recent years fuelled by demand overseas, particularly in the United States, for its eco-friendly hybrid cars.
Toyota enjoyed operating profit of 2.27 trillion yen in the last financial year.
For the current year, Toyota now expects global sales worth 21.5 trillion yen, down from an earlier estimate of 23.0 trillion yen. -- AFP
