Toyota has significantly increased its full-year net loss estimate to $3.9 billion and its operating loss estimate to $4.95 billion – three times larger than the automaker predicted just months ago. The automaker surprised industry analysts when it announced a $1.66 billion expected operating loss after the automaker’s second fiscal quarter – any loss would be Toyota’s first consolidated loss in its history.
For the third quarter – October through December – Toyota says it reported an operating loss of $3.97 billion compared to a year earlier profit of about $6.4 billion as a result of rapidly diminishing new car demand.
Toyota , like nearly every automaker across the globe, is faltering in the weakest new car sales market in modern history. New car deliveries are down dramatically across the board, including a nearly 35 percent drop in Toyota demand in the United States last month.
Toyota also further cut its forecast for 2008/09 sales across the world to 7.32 million vehicles, down from 7.54 million units predicted at the end of the second quarter.
Adding to Toyota’s woes, investor rating service Moody’s lowered its credit rating on Toyota to “Aa1,” down from “Aaa,” though both still denote a low risk level. Moody’s also gave Toyota a “negative” outlook, warning that further rating cuts are possible.
