Toyota Motor Corp forecasts a 31 percent drop in annual profits in an outlook that also assumes a robust recovery from the earthquake and tsunami in the coming months.
Toyota had not given an earnings forecast earlier because of uncertainties about its production outlook after the March 11 disaster wiped out key parts suppliers in northeastern Japan.
The company yesterday forecast a ￥280 billion (US$3.5 billion) profit for the fiscal year through March next year, down from ￥408 billion the previous fiscal year.
Most of its earnings will come in the second half of the fiscal year as it is expecting only a ￥10 billion profit for the first half, down drastically from ￥289 billion a year earlier.
The company’s annual sales through March next year are projected to fall 2 percent to ￥18.6 trillion from ￥18.99 trillion the previous year.
Last month, the maker of the Prius hybrid and Lexus luxury models said the January to March quarterly profit crumpled more than 75 percent to ￥25.4 billion because of the parts shortages that are hurting production.
For the fiscal year that ended in March, Toyota’s earnings doubled to ￥408.1 billion from ￥209.4 billion the previous year. Annual sales edged up 0.2 percent to ￥18.99 trillion.
The company is expected to lose its spot as the world’s top-selling automaker to General Motors Co this year because of the disasters.
Executive vice president Satoshi Ozawa brushed off fears about slipping from the top.
“There is absolutely no importance in being No. 1,” he told reporters. “Our vision is to make good cars and make customers happy.”
Toyota is now expecting to sell 7.24 million vehicles for the fiscal year through March next year, down from 7.31 million vehicles in the previous year.
Another problem that Toyota, as well as other Japanese automakers, is facing is an electricity shortage after the quake and tsunami destroyed a nuclear power plant in northeastern Japan. Another nuclear plant in the region where Toyota is headquartered is also being shut down because of growing fears about the safety of nuclear power.
Japanese automakers are being asked to reduce electricity use by 15 percent from July through September. Ozawa said Toyota planned to do its best to cut electricity use.
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