US Woes Drive Toyota Profits Down 28%

World's No. 2 automaker sees tough year ahead
By Jim O'Neill,  Newser User
Posted May 8, 2008 7:15 AM CDT
A Chinese girl looks at a Toyota Vios on display at the Beijing International Automotive Exhibition in Beijing.   (AP Photo/Andy Wong)
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(Newser) – Even Toyota—with its array of popular gas-sipping vehicles—is struggling in a slumping global economy, according to the latest figures. The world’s No. 2 automaker today reported that earnings for the last quarter fell 28% to $3.05 billion from $4.2 billion a year ago, reports the AP. "We are facing a severe business environment," said Toyota's president.

A stronger yen, slow sales in North America, rising costs, and a credit market that hasn’t rebounded will continue to hurt the company in coming months, officials predicted. For the first time in nine years, the company expects to see sales drop. Toyota analysts also predicted a net profit decline of 27% in the fiscal year ending next March.