Toyota loss bigger than expected: Update

Toyota today reported an annual operating loss of about $4.4 billion on revenues of $206.8 billion. This is the company’s first operating loss in 70 years.

Analysts were expecting a smaller loss of $3.5 billion and Toyota had predicted a similar loss and slightly higher revenues of $211.6 billion in February.

Last year, Toyota earned profits of $17.4 billion on net revenues of more than $265 billion.

The biggest loss came in the January-March fourth quarter when Toyota’s losses rose to $6.9 billion as sales of its cars and light trucks stumbled even in the expanding Chinese market.

Toyota is now forecasting an $8.9 billion loss for this fiscal year and expects to sell one million fewer light vehicles primarily due to its Japanese and North American markets where industry-wide sales have slumped to levels not seen in more than 20 years.

In a news conference, Toyota President Katsuaki Watanbe said, “Of course the external environment doesn’t help, but we were lacking in the scope and speed of dealing with various problems and issues, and for that I am sorry.”

In March, Toyota asked the Japanese government for a $2 billion loan to help fund its consumer financing operations after Standard & Poor’s downgraded the automaker’s credit rating from AAA. S&P has now downgraded Toyota’s rating from AA+ to AA with a negative outlook.