Results from Toyota Motor to be released next month are expected to show the auto giant returning to profit in the year to last month, despite a massive recall scandal, news reports said yesterday.
The Japanese automaker is expected to post a group operating profit of up to ¥50 billion (US$530 million), reversing a ¥461 billion operating loss for the previous year, the Nikkei business daily said.
The uptick is mainly attributable to cost-cutting and a weak yen, which offset the costs of the global recalls, the daily said.
The company has recalled around 10 million vehicles worldwide since late last year because of accelerator and brake defects, but nevertheless expected to see a “good earnings situation” a Toyota executive told Kyodo News.
STRONG DEMAND
Toyota had earlier forecast an operating loss of ¥20 billion for the year to the end of March.
Sales were expected to show a 5 percent fall to 7.2 million units, Nikkei said. The better-than-expected sales were partly attributable to strong demand for its new Prius hybrid car in Japan.
A Toyota spokesman was not immediately available to comment on the report.
The firm is to announce its earnings results early next month.
On Monday the company agreed to pay a US$16.4 million fine, the largest for an automaker in the US, for hiding for at least four months accelerator pedal defects blamed in more than 50 US deaths.
Toyota faces at least 97 US lawsuits seeking damages for injury or death linked to sudden acceleration and 138 class action lawsuits from US customers suing to recoup losses in the resale value of Toyota vehicles.
Separately, Toyota is recalling 100,000 Corolla model cars sold in Brazil over acceleration problems, a consumer protection group said on Friday after meeting with the Japanese automaker.
BRAZIL
The recall comes a day after the Brazilian state of Minas Gerais ordered a ban on the sales of the best-selling car, saying the vehicles presented a safety threat.
After a meeting with consumer advocacy bodies, Toyota said it would review the condition of the vehicles’ floor mats, which authorities and manufacturers have pinpointed as the source of several accelerator problems that led to accidents, according to Sao Paulo-based consumer protection agency Procon.
“The recall is aimed at safeguarding the health and safety of Brazilian consumers,” said Procon in a statement.
Toyota “will inform consumers [of the recall] in the coming days,” it added.
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