By on April 25, 2010

One would think that with all the recalls, Toyota would be looking at a hefty loss for fiscal 2009, which ended on March 2010. Toyota itself thought the same. Well, not hefty, but last projections saw a loss in the neighborhood of $200m. A loss is a loss, and it would have been the 3rd lost year in a row. Toyota bean counters went over the books with a fine tooth comb. And guess what they found?

A likely profit of around $500m! “Cost reductions and a weaker yen staved off another year in the red,” reports The Nikkei [sub]. The full whammy of recall costs will hit this fiscal anyway, so it is doubly good that half a billion dollars were found. This way, if or when they write a loss in the current 2010 fiscal, nobody can say that Toyota “lost money for the fourth year in a row.” That would be devastating for the all-important hyo-ban (reputation) of Toyota and Toyoda. The yen, which had been frighteningly strong for most of the year, lost some of its strength just in time for the end of the fiscal year, only to get stronger again. Looks like someone helped out the hyo-ban of the whole Japanese export industry. Doesn’t change the facts much, but appearances are everything.

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11 Comments on “Toyota’s Final Numbers: Gain Or Loss?...”


  • avatar

    $200 Million hurts, but, not as much as the damage done to their brand perception.

    For God’s sakes…HYUNDAI is on the Come up.

    • 0 avatar
      Robert.Walter

      Just after seeing your comment I went to the WSJ, and there was this headline “Hyundai Sonata: Most Car for Least Money?”:

      http://online.wsj.com/article/SB10001424052748704133804575198213563849350.html?mod=WSJ_hp_editorsPicks

  • avatar
    blue adidas

    Toyota will lie through their teeth before admitting they’re a failing company. I don’t trust them or really care about what happens to them. Buying a Toyota isn’t a consideration any more.

  • avatar
    john.fritz

    That. Dude. Can’t. Smile.

    • 0 avatar
      Tricky Dicky

      John – maybe you’ve only seen him with his back against the wall. It’s not like the guy had a honeymoon period to speak of. All he seems to have been doing since he took charge is trying to clear up problems that have clearly been laid down for some years.

      Here’s a smiling Akio, but it’s still a bit cheesy.
      http://dreamfactoryblog.files.wordpress.com/2010/03/akio-toyoda.jpg

      I’m sure I’ve seen some pics where he’s really smiling, having caned an LFA round the Nurburgring. At least he’s a petrolhead and not a beancounter.

  • avatar
    JimothyLite

    Yes, he can smile. He’s just chewing on something, a type of bird.

  • avatar
    Telegraph Road

    Despite its recent fall, Toyota’s market capitalization is 50% more than that of Goldman Sachs. Former Ford CFO Alan Gilmore famously said, “Toyota has more money than God”. They’ll ride out this trying time just fine, as will Goldman Sachs and the Vatican. But Goldman CEO also said Goldman Sachs is doing “God’s work”. So maybe it’s all the same.

  • avatar

    I’ve just seen the two latest Avalon ads, the train station one and the pilot one. Holy crap, are they trying to raise Oldsmobile buyers from the dead??? Those ads have great production value but they are – AWFUL – unless you’re target demographic is 80 year old World War II vets who can’t find the brake pedal.

  • avatar
    i_godzuki

    If Toyota makes a loss, which it now seems it won’t, it would have been its second loss in a row rather than third.


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