6 November 2009 / REUTERS, TOKYO
Toyota Motor Corp reported a surprise quarterly profit and slashed its annual loss forecast by more than half as sales and cost cutting beat its forecasts, putting it on track to follow Japanese rivals into the black next year.
Toyota, the world’s biggest carmaker by sales, wrapped up an earnings season dominated by rosier projections from Japanese automakers as they squeeze out savings and boost manufacturing efficiencies to offset the damaging rise in the yen. The industry has also gotten a sales boost from government-backed incentives from Germany to China and Japan, aimed at igniting demand through the worst economic crisis in generations. But with the outlook for demand uncertain at best as such stimulus programs begin to run out, Toyota is looking to eliminate more spending, announcing its exit from Formula One racing on Wednesday to put its annual budget of around $300 million to better use. Toyota now expects an operating loss of 350 billion yen ($3.9 billion) for the year to March 31. It expects a net loss of 200 billion yen instead of a loss of 450 billion yen.
