Toyota forecasts fall in profits

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Toyota Motor Corp is forecasting its operating profit to fall by a 35 percent (to $3.7 billion); as the recent earthquake in Japan disrupted the companys car production and sales.

The company had reported a 52 percent fall on profit for the first quarter of the year and had delayed providing a forecast for the next quarter as it studied the impact of the disaster on consumption and the companys supply chain.

The deadly earthquake of 9.0 magnitude had forced Toyota and the other Japanese automakers to cut down on output; as they struggled to secure vital parts. The following nuclear disaster (to the earthquake) and power shortages just added further to the woes.

Toyota’s stock is down by a 7.5 percent since the March 11 disaster, against a 6.5 percent fall in the Nikkei.

Source: REUTERS

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