Toyota posts 2nd qtr profit, trims annual loss outlook on cost cuts+

TOKYO, Nov. 5 Kyodo -
Toyota Motor Corp. returned to the black in the July to September quarter for
the first time in four quarters, prompting the automaker to trim its full-year
loss forecasts on drastic cost cuts and a boost in demand from government
incentives worldwide.
Despite the second upward revision to its earnings outlook, Toyota is alone
among Japan's top three automakers in projecting annual losses both on the net
balance and operating levels as it continues to be hit hard by a stronger yen.
For the whole of fiscal 2009 through next March, Toyota is now anticipating a
group net loss of 200 billion yen, against an earlier projected 450 billion
yen, which would mark red ink for the second consecutive year.
It also trimmed its operating loss forecast to 350 billion yen, from an earlier
projected 750 billion yen, on sales of 18 trillion yen, against 16.8 trillion
yen forecast in August.
In fiscal 2008, Toyota incurred a group net profit of 436.94 billion yen and an
operating loss of 461.01 billion yen on sales of 20.53 trillion yen.
The company booked a surprise operating profit of 58 billion yen in the
July-September quarter, though down nearly 66 percent from a year earlier,
helped also by the strong results of its financial arm dealing with auto loans.
Toyota, which has Daihatsu Motor Co. and Hino Motors Ltd. under its wing, also
raised its global sales target for fiscal 2009 to 7.03 million units, up from
an earlier forecast of 6.6 million units, on the back of brisk demand for its
Prius and other gas-electric hybrid models.
But unlike rivals Honda Motor Co. and Nissan Motor Co., Toyota is sticking with
conservative red-ink figures on the assumption that the U.S. dollar will trade
at the 90 yen level in the October to March period, compared with an average
around 96 yen during the first half.
''The government stimulus measures will expire in many countries by the
year-end so we need to be cautious about the market outlook,'' Executive Vice
President Yoichiro Ichimaru said at a press conference in Tokyo.
The world's largest automaker shocked the industry by announcing its pullout
from Formula One on Wednesday, but the company said its cost-cutting efforts
have been moving faster than expected.
Toyota cut 390 billion yen in fixed costs in the first six months of the
business year, outpacing its full-year 490 billion yen target.
For the April to September period, Toyota booked a group operating loss of
136.86 billion yen, against a year-earlier profit of 582.07 billion yen. It
also incurred a group net loss of 55.99 billion yen, against a year-earlier
profit of 493.47 billion yen, on sales of 8.38 trillion yen, down 31.3 percent
from a year earlier.
The company sold 3.13 million units worldwide, down 26.4 percent from a year
earlier.
Many other Japanese automakers have given rosier outlooks for the whole
business year, driven by vibrant demand in emerging markets like China, where
Toyota has fallen behind compared with rivals like Nissan.
Nissan, Japan's third-largest automaker, said Wednesday it expects to return to
the black in the current business year with a group operating profit of 120
billion yen.
Last week, Honda, the No. 2 automaker, nearly tripled its group net profit
forecast for the business year to 155 billion yen, against an earlier
projection of 55 billion yen and up 13.1 percent from the previous year.
==Kyodo