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3 August 2011 | Angeline Albert
First quarter profits for the Toyota Motor Corporation have
plummeted by almost 100 per cent as a result of the impact on its operations of
March’s tsunami in Japan.
The car manufacturer’s net profits, for the three months to
the end of June, fell from 190.4 billion yen (£1.5 billion) in the same period
last financial year to 1.1 billion yen (£8.6 million), following a decline in
vehicle sales – a 99.4 per cent fall.
In a statement about the results published yesterday, Toyota’s
senior managing officer, Takahiko Ijichi, said: “In Japan and North America
where the effects of the earthquake were particularly serious, vehicle sales
declined substantially. In the Asia region, despite the impact of the
earthquake, we were able to maintain a similar level of vehicle sales as the
previous year in countries led by Indonesia.”
Fluctuations in currency exchange rates (particularly in
relation to the value of the Japanese yen, euro, US dollar, and British pound)
also contributed to the fall in profits.
In Japan, vehicle sales totalled 292,000 units, a decrease of
208,000 compared with the same period in the last financial year. Consolidated
vehicle sales around the world for the first quarter totalled 1,221,000 units,
a drop of 599,000 compared with the same time last year.
Ijichi added: “Toyota remains committed to pursuing an
improvement of its earnings structure globally through cost reduction
activities in which it has strong track record, and to utilising every
opportunity to increase production and sales outlook.”
Toyota’s belief that it will improve its earnings was
reflected by a revised consolidated vehicle sales forecast for the full
financial year ending 31 March 2012 from 7,240,000 to 7,600,000 units. This is
an increase of 360,000 from its forecast announced in June. It also revised its
consolidated forecasts for the 2012 financial year to a net income of 390
billion yen (£3.1 billion).