trading in the U.S. fell early Monday after the Japanese carmaker warned that it would post an operating loss for the fiscal year ending in March owing to lower demand for vehicles and a stronger yen.
In recent trading, Toyota's ADRs were down 3.4% to $62.20.
The company does expect net income for the fiscal year of about 50 billion yen, but that's well below its previous forecast. On an operating basis, Toyota is predicting a loss of 150 billion yen, compared with earlier expectations for an operating profit of 600 billion yen, its second cut in recent weeks.
If in fact Toyota does have an operating loss, it would be the first time that's happened for a fiscal year. Last year, Toyota had net earnings of 1.7 trillion yen.
Just days ago,
decreased its own estimates amid falling demand for cars and the world's economic deterioration.
Of course, the pain in the sector isn't limited to Japan's manufacturers. Auto sales in the U.S. have fallen off a cliff, and domestic car producers
have suffered from substantially lower spending by consumers.
In an effort to prop up U.S. car companies, President Bush on Friday said
and Chrysler would get a $17.4 billion aid package.
This article was written by a staff member of TheStreet.com.