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Toyota’s first quarter profits plummet

05/08/2008, 10:43 AM

By Drew Johnson

Toyota announced its first quarter results on Wednesday, and the automaker’s fiscal results highlight just how bad the U.S. auto market is. Toyota’s profits tumbled by 28 percent during the first four months of the year — compared to the same time period in 2007 — largely due to a sagging U.S. market and the continued erosion of the dollar’s value against the yen.

Toyota’s first quarter 2008 profits fell from $4.2 billion a year earlier to $3.05 billion. But despite the dip in profits, Toyota’s sales were actually up 3.8 percent, totaling $63.14 billion.

Last year the dollar was worth around 120 yen, but that amount has fallen to about 100 today. About a third of Toyota’s sales come from the U.S.

And the future outlook for the Japanese automaker doesn’t look much better. Despite a strong reputations for making quality, fuel-efficient vehicles and $4 a gallon gasoline, Toyota expects its sales to fall for the first time since 2000 when its sales slipped by 0.3 percent, says the The Detroit News. Toyota also expects that its net profits will decrease by 27 percent.

That prediction juxtaposed with Toyota’s results from the previous fiscal year really indicates how far — and how quickly — the auto market has fallen. For the fiscal year that ended on March 31, Toyota saw a record profit of $16.54 billion with a worldwide sales increase of 9.8 percent to $252.8 billion, which was also a record.

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05/08, 10:47 AM

posted by:

HemiRoadRunner

Can we all sing “Hallelujah” in unison?

05/08, 10:53 AM

posted by:

xyunya

Well, let the music begin. It is 3 billion in profit vs 4 billion. We are talking 1 quarter not a year. Even if the rest of the year sucks and worse they about to MAKE 10 billions, not loose a few. OK, Vienna chorus boyz, pipe in.

05/08, 10:58 AM

posted by:

lucklaster

Hemi:
I’m in.

05/08, 11:08 AM

posted by:

johnnycanuck

OK everybody gather ’round the Karaoke machine. Now do we open with Captain and Tennille or Van Halen?

05/08, 11:10 AM

posted by:

xyunya

Van Halen, no contest, unless someone prefers the other side of the moon

05/08, 11:19 AM

posted by:

Fletch

Any profit is still better than a loss.

05/08, 11:24 AM

posted by:

gizmo2

The market is going to affect everyone. The good news for Toyota is that they are profitable and most likely will remain that way. However let’s face the facts Toyota sales looks good because Prius and Corollas are selling fairly well. But who think that Prius could be a high profit making car. It simply can’t. Toyota like our big 3 also depend on the sale of bigger vehicle to make good profit.

05/08, 11:31 AM

posted by:

Stinky007

Serves them right for ditching quality and reliability for sheer numbers!
All the reviews I’ve read recently for European 2008 Toyota models have pointed out that quality has been decreased recently!
SHAME!

05/08, 11:33 AM

posted by:

xyunya

In defense of Toyota, they did not fall into a trap of working on ONLY high profit old technology truck based products. Yes, Ford makes over 10K off each F150, but if they can’t sell that one F150 and Toyota sells all inventory of Corolla’s at $300-$500 profit it makes money. Toyota foray into high profit market was a bust, but during the same period of time they developed second gen Prius & PriusII and stating that they at least not loosing money on them. Like with any top dog the biggest challenge has to come from within. Their stock still will have positive P/E.

05/08, 11:46 AM

posted by:

400horseSS

“America **** Yeah”

05/08, 11:46 AM

posted by:

TOZO

Hell yeah! Rejoice it up!

05/08, 12:01 PM

posted by:

shaver

I expect an anouncement to build new factory(great, more $15.00/hr jobs) in US within 3 months. The only way to guarantee against the Yen/Dollar exchange rate ruining profits. US based suppliers are also becomng more competetive with every % point.

05/08, 12:04 PM

posted by:

jumpoffit

durca durca… muhammad jihad

05/08, 12:08 PM

posted by:

HemiRoadRunner

Van Halen??? What about Black Sabbath, ZZ Top or Led Zeppelin?

05/08, 12:11 PM

posted by:

A4

OMGOMGOMGOMGOMGOMG! TOYOTA THE GREAT? NOOOOO! **** toyota

05/08, 12:18 PM

posted by:

Carwatcher

Toyota is no longer invinceable.

05/08, 12:24 PM

posted by:

HoosierHero

#8 “Serves them right for ditching quality and reliability for sheer numbers!”

Exactly. I’ve owned 4 Toyotas since the 80’s and I’m glad they are getting their comeuppance. It doesn’t always pay to be #1. They were doing just fine the way they were. I won’t buy a Toyota next time.

05/08, 12:58 PM

posted by:

injunraiv

Well, I guess if Toyotas were really built in the US, the value of the yen wouldn’t effect their profits. So much for THAT argument…

05/08, 1:04 PM

posted by:

AMGoff

NOOOO…. can’t be!

Hmmm… sales are up while profits are way down… Looks like Toyota’s efficiency is plummeting across the board.

Actually, even I view this as bad news… If even the little import-humpers aren’t buying – you know we’re in worse shape than originally thought.

05/08, 1:20 PM

posted by:

WEKS

Umm… not to be buzz kill but I’m fairly certain that ALL automakers will will face falling profits for Q1 of 2008. The weak dollar and the crappy US economy all contribute to that. Or did you all just forget that GM for example posted a $3.25 billion loss?

05/08, 1:45 PM

posted by:

F3INT))AP3X

^^^^ LOL reality check

05/08, 2:07 PM

posted by:

Scarface03

Easy there, haters, I think most people are reading too much into this. The dip in profits don’t appear to be related to the decline in Toyota quality at all, because first quarter sales are up. The data LLN reports is that for Q1 2008, Toyota’s sales are up, but its profits down. Why? because for every one of its U.S. cars sold, Toyota is making 17% less money. This is huge because the U.S. is a big chunk of their total volume.

It’s interesting that Toyota is predicting a downward slide, when Q1 of 2008 was the tail-end of their so-called record-breaking fiscal year of $16.5 billion profit. WEKS is right, what’s happening to Toyota might be happening to every volume producer.

05/08, 2:23 PM

posted by:

HemiRoadRunner

“Haters” is such a ghetto sounding word. Why would anyone stand up and defend toyota? Traitor. Toyota supporter’s should be shot for treason.

05/08, 2:28 PM

posted by:

xyunya

Based on logic above 10 million US citizens should be shot for owning Toyota. Hezboallah and Al Quida combined could not cook anything better then such a patriot.

05/08, 3:25 PM

posted by:

Robert

But Ford’s results improved versus Q1 last year. Ah, how soon we forget.

05/08, 4:42 PM

posted by:

xyunya

True Ford’s results improved. Last year it lost 12 billion dollars. Portion of it was in the first quarter.

05/08, 6:40 PM

posted by:

olds307

Good.

Unfortunately this also means they’re going to bombard us with even more of those retarded television advertisements Toyota :ding: moving foward…. yeah moving Japan foward.

05/08, 8:05 PM

posted by:

DeansterTJ

HRR, you’re a ****ing moron. How many times are we going to go over the fact that unions are inherently communist, and therefore guilty of treason, therefore anyone supporting the American auto industry is guilty by extension?

As an aside, Van Halen all the way. I saw them live a few months ago in Montreal. EVH didn’t miss a note and DLR pranced around like he was 25 again. Insane show. One of the best ever

05/08, 8:41 PM

posted by:

jayjc08

Why are all you guys talking about how great this news is? Do some of you not get that much of Toyota’s operations are in America, and this reflects a loss of that driving force?

Hint: This has nothing to do with Ford, GM or Chrysler. Much of this has to do with some **** heads who think it’s a great idea to lower federal interest rates by a percent or two to “boost the economy”, while our dollar and it’s future goes into the ****s. Has anybody even considered why we have an interest rate on our money, or understand how ludacris, insane, stupid, dull minded, **** headed, disgusting and “retarded”, gay and any homosexual acts that you associate stupid with, blind sided, idiotic, foolish and last of all, 1115 it is?

05/08, 10:11 PM

posted by:

Eddie Willers

Yeah, I am tired of my investments not earning as much because the feds have to make it easier for the inbreeds to buy their crackhouses.

05/09, 1:51 AM

posted by:

TOZO

Although worldwide sales were up for Toyota, Toyota Motor Corp sales were down 5.6% by volume in the United States in the first quarter of 2008, year on year. Then again, pretty much all companies were down in the US.

05/09, 3:19 AM

posted by:

Veda

Regardless of how crappy new Toyotas are, this news is about how a profitable strong corp like Toyota is taking a hit from the current US economy. Other companies will post similar or more loses.

05/09, 2:33 PM

posted by:

AMGoff

So then… if worldwide sales are up, but profits took that big of a hit… then Toyota must really gouge the US in terms of profit margins relative to the rest of the world. Thanks Toy-o.

05/09, 3:40 PM

posted by:

ktulu

ha ha ha
dirtbags!

05/12, 9:27 PM

posted by:

mako88

Hello

For anyone that is getting a hard time from Toyota in terms of the Toyota Tacoma Frames rusting out please try this website The Center for Auto Safety It has alot of valuable information on it and you can file a complaint if you wish. Another website is Home | National Highway Traffic Safety Administration(NHTSA) | U.S. Department of Transportation file a complaint and they will start investigating your complaint. Hopefully this can help alot get many of these defective vehicles off the road and correct corporate irresponsibility.
Thanks

 
 
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