Toyota’s profits drop 77% after Japan earthquake

Toyota’s profits drop 77% after Japan earthquake

Like all Japanese carmakers, Toyota has been severely affected by the March 11 earthquake that saw huge damage and loss of life in Japan.

Despite plant shutdowns the world’s largest carmaker still announced profits of $314 million USD for the first three months of 2011, down 77 percent versus the same period in 2010. The $314 million profit is only a fourth of what analysts were expecting Toyota to make. With very low sales through the quarter, profits have been affected as a result.

While the announcement is disappointing for Toyota, things are set to get worse with even lower numbers expected for the period through to June. Supply issues are still hurting Toyota, with many plants running at only 50-percent capacity and some not running at all. These supply issues will see less stock being shipped to big markets like the U.S. and China which will lead to much lower revenue.

Toyota is fighting hard and says that production should ramp up to 70 percent of capacity by June, which is ahead of previous estimates.

For the entire fiscal year, Toyota earned $5.9 billion USD, nearly three times the profit of fiscal year 2009. Revenue was also up by .2 percent to $237 billion USD on sales of 7.3 million vehicles, an increase of 71,000 units compared to 2009.

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