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Toyota Forecast Operating Loss For The 1st Time In 71 Years!

Hammered by fading global demand and surging yen Toyota Motor Corp. has forecast an annual loss for the first time in its 70 year old history.

The company said it expected a loss of £1.1 billion from its core operations and has declared an emergency. The world's biggest car maker had been expected to issue its second profit warning in less than seven weeks after domestic rival Honda Motor Co. also cut its outlook again last week, but today's downward revision was bigger than analysts predicted.

The company will make profit on a net level for the year but has cut its forecast sharply to £370 million, one-tenth of the previous estimate and a tiny fraction of the £12 Billion profit the company earned in the last fiscal year.

We are facing an unprecedented emergency," President Katsuaki Watanabe told a year-end news conference today. "This is a crisis unlike the crises of the past."

[Via: cc]

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