Toyota posts first ever profit loss

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    Toyota posts first ever profit loss

    Post by Ross on 22nd December 2008, 06:14

    Toyota warned on Monday that it would post an operating loss for the first time in its 71-year history – raising fresh concerns about the sustainability of its Formula 1 team.

    The Japanese manufacturer cited a relentless slide in sales and a crippling rise in the yen as it slashed its group operating forecast for the 2008 financial year (ending on March 31) from a profit of 600 billion yen (£4.5bn) to a loss of 150 billion yen (£1.1bn).

    The gloomy prognosis from the world’s biggest, and arguably most efficient, car maker – renowned for making a profit even in difficult times – underlines the weakness of the global car industry, with potentially serious repercussions for manufacturer involvement in F1.

    Honda’s disastrous November sales figures played a major part in the company’s sudden decision to pull the plug on its F1 programme, which it said it had not been contemplating two months earlier.

    Following Honda’s withdrawal Toyota was quick to issue a statement reaffirming that it was “currently committed” to F1, but also emphasised the urgent need to cut costs.

    Source: ITV Sport

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