Toyota Motor Corporation said today that it forecast a first operating loss in the year to March as the global economic crisis hits the car industry hard. 'We are facing an unprecedented urgent situation,' the Toyota president said.
Japan's top car maker said it expected an operating loss of 150 billion yen ($1.69 billion) for the financial year, the first loss since it started reporting annual earnings in March 1941.
Toyota said in a statement it was making the cut due to a soaring yen 'as well as a review of sales plans following a faster than expected contraction of the auto market.'
Toyota said it still expected to make a profit on a net level but cut its forecast sharply to 50 billion yen, down from a previous estimate of 550 billion yen.
The car maker has enjoyed hefty profits in recent years fuelled by demand overseas, particularly in the US, for its eco-friendly hybrid cars. Toyota enjoyed operating profit of 2.27 trillion yen in the last financial year.
For the current year, Toyota now expects global sales worth 21.5 trillion yen, down from an earlier estimate of 23 trillion yen.
