Tuesday, May 13, 2008

Toyota issues a bleak earnings forecast

Automaker forecasts first annual profit drop in seven years

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TOKYO - Toyota said the strong yen and weaker U.S. sales took a bite out of January-March earnings and projected worse was to come — a 27 percent plunge in its full-year profit.

It would be the first drop in full-year profit in seven years for the automaker.

The results and outlook released Thursday highlight how the tough North American auto market is hammering profits. Meanwhile, unfavorable currency swings added to a growing list of problems for Toyota Motor Corp., including soaring material and energy costs and a stagnant auto market in its home market of Japan.Story continues below

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