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| Toyota braced for historic loss | Toyota braced for historic loss |
| (10 minutes later) | |
| Japan's biggest carmaker Toyota has forecast its first annual loss in 71 years due to plummeting sales and a surge in the value of the yen. | Japan's biggest carmaker Toyota has forecast its first annual loss in 71 years due to plummeting sales and a surge in the value of the yen. |
| The firm said it expected a loss of 150bn yen (£1.1bn) in yearly operating profits - from its core operations. | The firm said it expected a loss of 150bn yen (£1.1bn) in yearly operating profits - from its core operations. |
| Japan also posted a trade deficit of $2.5bn (£1.7bn) in November as exports fell at a record rate. | Japan also posted a trade deficit of $2.5bn (£1.7bn) in November as exports fell at a record rate. |
| The rising yen saw export levels down 26.7% from a year earlier, the ministry of finance said. | The rising yen saw export levels down 26.7% from a year earlier, the ministry of finance said. |
| The carmaker recorded an operating profit of 2.27 trillion yen last year. | |
| Toyota said it still expected to make a profit on a net level for the year ended March but has cut its forecast sharply to 50bn yen, down from a previous estimate of 550bn yen. | |
| It is the second profit warning by Toyota in less than seven weeks. The latest estimate is far lower than its net profit of 1.7 trillion yen earned the previous year. | |
| Falling sales | |
| Toyota's president Katsuaki Watanabe said that the company now expected to sell 8.96 million vehicles around the world this year, down 4% from the previous year. Unlike previous years, he gave no goal for 2009. | |
| Toyota said in a statement it was cutting its profits forecast because of the soaring yen "as well as a review of sales plans following a faster than expected contraction of the auto market". | |
| Japanese carmakers have all been hurt by plummeting car sales in their key overseas markets, including the US. | Japanese carmakers have all been hurt by plummeting car sales in their key overseas markets, including the US. |
| The surging yen has eroded their overseas earnings and also hit their profits - the dollar has fallen to 13-year lows against the Japanese currency. | The surging yen has eroded their overseas earnings and also hit their profits - the dollar has fallen to 13-year lows against the Japanese currency. |
| Honda last week cut its annual profit forecast by 67%, and outlined a list of counter-measures such as putting off non-urgent investments to prop up its profitability. | Honda last week cut its annual profit forecast by 67%, and outlined a list of counter-measures such as putting off non-urgent investments to prop up its profitability. |
| In the United States, President Bush threw the struggling carmakers General Motors and Chrysler a lifeline of up to $17.4bn to stave off bankruptcy as they reel under slumping demand. | In the United States, President Bush threw the struggling carmakers General Motors and Chrysler a lifeline of up to $17.4bn to stave off bankruptcy as they reel under slumping demand. |
| Output slashed | Output slashed |
| Japan typically runs a trade surplus due to strong demand for its products - but the surging yen has hit demand for its goods. | Japan typically runs a trade surplus due to strong demand for its products - but the surging yen has hit demand for its goods. |
| Japanese exports fell sharply to all areas but those to the US were worst-hit, plunging 33.8% - also a record drop. | Japanese exports fell sharply to all areas but those to the US were worst-hit, plunging 33.8% - also a record drop. |
| Shipments to the European Union were down 30.8% while those to China fell 24.5%, the biggest fall since 1995, said Reuters news agency. | Shipments to the European Union were down 30.8% while those to China fell 24.5%, the biggest fall since 1995, said Reuters news agency. |
| Exports to the rest of Asia declined 26.7%. | Exports to the rest of Asia declined 26.7%. |
| Imports were also down - 14.4% overall - due in part to lower oil prices. | Imports were also down - 14.4% overall - due in part to lower oil prices. |
| Japan's economy - the world's second-largest after the US - has slipped into its first recession in seven years after two quarters of negative growth in a row. | Japan's economy - the world's second-largest after the US - has slipped into its first recession in seven years after two quarters of negative growth in a row. |
| The government has forecast zero growth in the year ending March 2010. | The government has forecast zero growth in the year ending March 2010. |