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This year has been a tough one for Toyota thanks to Mother Nature and her natural disasters. As if the tragic earthquake and tsunami in Japan wasn’t bad enough, Thailand experienced its worst floods in almost 70 years, disrupting Toyota’s production of their popular Camry and Prius models.
As a result, Toyota has had to cut its full-year profit forecast by 54-percent, dropping their net income 56-percent to $2.3 billion in the 12 months ending on March 31st, 2012. That’s less than half the profit that was originally projected by analyst estimates compiled by Bloomberg.
Combine the disasters with the yen’s surge and it’s no surprise that Toyota’s recovery is going to be tough and may take longer than one would expect for the popular Japanese auto manufacturer. It is likely that Toyota will be giving up its three-year crown of world’s largest carmaker to GM for 2011.
Due to the flood, Toyota and Honda both delayed their new projections, while Nissan on the other hand raised its profit forecast thanks to a rise in vehicle sales in China. It’s widely believed that Toyota lost more output than any other automotive manufacturer from Thailand’s record floods, possibly causing 260,000 vehicles to have been lost in production.
Toyota is also in a balancing act with the pricing on their vehicles due to the rising yen. They have even admitted that they have had to raise the prices on some of their vehicles and anticipate a drop in sales as a result.
[Source: Automotive News]