Grim Forcast with Toyota Profits down 28%

Hi Grumps

Well, as far as the economy, we're in deep s*** and I think you know it too. Not just the US but also Canada, as the vast majority of Canadian exports go to the US.

So I'd be surprised to hear if Toyota *didn't* expect a decline. Some industries, such as Canadian pulp/paper, will be devastated

We better hold on tight. The landing is going to be rough

jay

 

Well Hybrid sales might be "through the roof" percentage wise, however I'm sure they make up a very small percentage of their overall sales normally so when you see a large drop in those other areas it's almost a no brainer what that leads to.

 

For Toyota, hybrids make up a substantial portion of their sales. Over 10% of all their cars sold are hybrids, far exceeding every other manufacturer. If every single model they sold were available in a hybrid, hybrid sales would be even higher. Come on Toyota, where is our bare bones hybrid (Corolla) and our people hauler hybrid (Sienna)?

Ford and Honda are the only other manufactures that sells any significant number of hybrids but they only have one model (Escape and Civic) which typically make up 10-15% of that model's sales.

I'm not sure why the headline is so drastic. I mean "grim"?

While profits are down, Toyota is still doing very well compared to the "Big 3" which are all bleeding profuse amounts of red ink.

 

Along those lines, I would also like to see Toyota offer the Yaris with the EU 1 litre 3 cylinder and 1.3 litre 4 cylinder motor. I've rented them in the UK with the 1.0 and it provides adequate power. The real trick for me was shifting a stick shift with my left hand

The Yaris here has a 1.5 litre motor, which is the "hot rod" motor in the UK and other EU countries

 

There is a big difference between a Drop in Profits and a Loss.

Kind of like calling a Decrease in the rate of a Tax Increase a "Tax Cut".

They do admit that this comes "After a steady run of record-breaking profits". Was there an expectation of some sort that the run would continue unbroken for ever and ever?

If they have one weak spot, it's reliance on the US Market which makes the currency adjustment particularly painful, but that's kind of the point. When you import too much, your currency value drops and makes imports more expensive.

So, in the face of Rising Commodity Costs and Rising Yen value, they still made a profit. A freakin $11.93 Billion Dollar PROFIT.

They are still the most profitable Car Company in the world.

Ya know, that's still more Profit than WalMart.

Looking at the Forbes 500, I only see 8 Companies who have a greater profit than Toyota's "Grim" results.

They're still among the 20 top companies in the World in profit, and a majority of the ones ahead of them are either Energy Companies or Financial Companies (Banks/Brokerages etc).

Of companies that actually produce things, there are very few ahead of them (GE for one) and maybe a couple of Drug companies.

I just get peeved over the News Outlets need to spin everything in the most hysterical Doom and Gloom terms.

Yeah, there are market corrections going on, but really, a little perspective. It's been a bad year for everyone and did anyone think Toyota was somehow immune to the rest of the world?

 

Toyota is in the best position of any major automaker. They are taking lumps because of profitable truck sales are down but they at least have what people are looking for. I expect them to be able to increase Yaris and Corolla production quickly. They are on the other hand going to have trouble increasing Prius numbers quickly due to battery pack supplies.


The Ford dealer I bought my Mustang from just (finally) re-arranged the lot this week. Before all you could see where trucks and Mustangs from the road. Now you see the Focus, Fusion and Mustang. The trucks are all off to the side.