Things do not happen the way it had planned always and after the fall of Toyota shares, this has been proved.
Toyota Motor Corp shares have dropped almost 3 percent today morning after the forecast made by the company, a larger-than-expected fall in operating profit.
On the other side, the company is struggling to restore its production that was hit by the Japan earthquake in March.
The automaker has already forecasted that its operating profit would fall 35 percent to 300 billion yen ($3.7 billion) on Friday for the year till March 2012. The automaker that makes nearly 3 million cars a year in Japan has also said that the strength of yen would eat into profits and this will augment the pressure to trade more production abroad. Considering that the Japan’s currency is about 5 yen stronger as compared to the 85 per dollar level, Toyota believes it requires breaking even on vehicles that are produced in the country.
At one point, Toyota is optimistically stating that its global production will be returned to normal following the month of November due to supplies of parts are restored. However from other side, forecast global sales is about to fall 1 percent to 7.24 million vehicles if considered this business year.
If this happens, then the Japanese carmaker will be listed below General Motors and perhaps below Volkswagen AG as well in the global vehicle sales ranking of the year.
By Sunita Mandal