Toyota saw first annual loss in 71 years
Because of declining sales and surging yen, the biggest Japanese automaker Toyota sees its first yearly loss in 71 years.
According to the company, it may suffer 150bn yen annual loss in its operating profits.
Just like many other countries of the world, the current financial year was depressive for Japan and it posted a $2.5bn trade deficit in November.
There were 26.7% down export levels because of the increasing yen, finance ministry of country says.
Toyota posted 2.27 trillion yen profit one year back. Toyota told that it was expecting to have significant net profit for the fiscal year ended in March, however, the company had to decrease its forecast to 50bn Japanese yen that were estimated 550bn previously.
The new forecast has been considerably decreased from its 1.7 trillion profits for the last year.
Katsuaki Watanabe, the president of Toyota, says that the company would sell 8.96 million vehicles this year that would be around 4 percent lower than the last year.
The president didn’t any goal for the coming year, as he used to give during the previous year.
In a statement, Toyota announced that the company had to cut its forecast to the profit and it was mainly due to higher yen prices, and worldwide weaker demands of the cars.
The weaker demands of autos are hurting almost all the Japanese car makers in different foreign markets.