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Japan Quakes Could Put $275 Million Dent in Toyota’s Profits
Lost production caused by earthquakes in southern Japan over the past few days could reduce Toyota Motor Corp.’s operating profits by 30 million yen ($275 million).
So says Koichi Sugimoto, a Tokyo-based analyst with Mitsubishi UFJ Morgan Stanley.
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Lost production caused by earthquakes in southern Japan over the past few days could reduce Toyota Motor Corp.’s operating profits by 30 million yen ($275 million).
So says Koichi Sugimoto, a Tokyo-based analyst with Mitsubishi UFJ Morgan Stanley. He estimates the quakes will cut output by Toyota and its Daihatsu Motor Co. minicar affiliate by 63,500 units.
He also says the impact could continue through summer. It isn’t clear whether Toyota could recoup lost production later in the year. The company says it will suspend or reduce output at its assembly plants in Japan in stages through Saturday. Production will resume when parts become available.
Japan accounts for about 40% of worldwide vehicle production by the Toyota group, Bloomberg News reports. The news service says Toyota's ratio compares with 17% for Nissan and 16% for Honda.
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