Akio Toyoda, the founder of the company's grandson, takes over next month as more losses are predicted.
Toyota Motor Corporation finished off fiscal 2009 with a huge $7.7 billion loss during the fourth quarter of the traditional Japanese fiscal year, which ended March 31. The fourth quarter loss left the Japanese auto giant with a decidedly non-traditional full-year loss of $4.4 billion, the largest in the company’s 71-year history. Net revenues dropped 22%.
Toyota also released guidance that it expects another loss ¥550 billion or nearly $6 billion for the coming year. The company, used to never-ending expansion, is having extreme difficulties managing contraction.
“Both revenues and profits declined severely during this period,” said President Katsuaki Watanabe, who is being replaced next month by Akio Toyoda, the founder of the company’s grandson.
“The negative impact was a consequence of the significant deterioration in vehicle sales, particularly in the U.S. and Europe, the rapid appreciation of the yen against the U.S. dollar and the Euro and the sharp rise in raw materials.”
“It appears that it will take some more time before the financial markets in the U.S. and Europe normalize and the global economy recovers,” Watanabe predicted
The Japanese automaker reported that North American vehicle sales dropped more than 25% to 2.21 million units. The North American unit also finished the fiscal year with a ¥390 billion loss or a -$4.2 billion based on an exchange rate of ¥93 to the dollar
“The decrease in operating income was mainly due to decreases in both production volume and vehicles sold, and increases in the provision for credit losses, net charge-offs and allowance for residual value losses in sales finance subsidiaries in the United States of America,” Toyota said. (more…)