Updated from 1:39 a.m. ESTToyota ( TM), the world's No. 1 automaker, swung to a third-quarter loss of 164.7 billion yen ($1.8 billion) on a stronger yen and as car sales plummeted in the U.S. and Europe, and said it now expects to report a fiscal-year loss of 350 billion yen ($3.85 billion) from a previous forecast of net income of 50 billion yen. It would be the company's first net loss since 1950. Toyota said it expects a fiscal-year operating loss of 450 billion yen, compared with a previous estimate of a loss of 150 billion yen. Third-quarter revenue fell 28.4% to 4.8 trillion yen. "Both revenues and profits declined severely during this period," said Toyota Executive Vice President Mitsuo Kinoshita. "The negative results are largely due to lower vehicle sales volume under difficult market conditions mainly in the U.S. and Europe, and the rapid appreciation of the yen against the U.S. dollar and the euro." Net income in the third quarter a year earlier was 458.6 billion yen. Toyota said vehicle sales in the third quarter were 1.84 million units, a decrease of 443,000 units from a year earlier. The company estimates sales for the fiscal year ending March 31 of 7.32 million units, a decrease of 220,000 units from a prior forecast. Kinoshita promised that the company will turn itself around through cost cuts and reshaping its business by coming up with new products to meet global demand. He said Toyota continues to be committed to developing gas-electric hybrids as a pillar of its growth strategy. Moody's Investors Service lowered its credit rating on the carmaker Friday, saying the tough global auto market was seriously hurting the Japanese automaker's profitability.
HOST // Robert Powell
Retirement Planning Event
More from Stocks
Shaq Tells TheStreet About the Moment He Fell in Love With Papa John's
Shaq tells TheStreet that 'everyone loves pizza and pizza loves everyone' after he joins the board of Papa John's. Watch the interview.
Dow Slammed on Weak Global Manufacturing Data; Inverted Yield Curve Hits Banks
Stocks closed sharply lower Friday after Wall Street was rattled by weaker-than-expected manufacturing data in the U.S. and Europe.
Ego and Trading: Do You Want to Be Right or Do You Want to Make Money?
When it comes to investing and trading there really is only one thing that matters - return on capital. Everything else is secondary.