Toyota Cuts Net Estimate 91%

123jump.com Staff
22 Dec, 2008
New York City

Tokyo stock market averages jumped more than 1.6% after the Bank of Japan expanded its asset purchase plan to commercial debts. November exports from Japan dropped 27%. Toyota cut its net income for the fiscal year by 91% and projected operating loss. Sales estimates were cut by 18%.

[R]5:00AM New York, 7:00PM Tokyo – November exports drop 26.7% to 5.3 trillion yen. Toyota Motor Co. slashes net income forecast by 91%.[/R]

Japan stock market averages rose 1.6% despite November exports dropped 26.7% and a 91% cut in net income forecast for the fiscal year to March by Toyota Motor Corp.

Speculation that the Bank of Japan''s move to buy corporate debt will ease conditions in the credit markets also strengthened investor sentiment.

In Tokyo trading Nikkei 255 index rose 1.6% or 135.26 to 8,723.78, and the broader Topix Index edged up 1.7% or 14.29 to 848.72.

In the first section of the Tokyo Stock Exchange 6.4 billion shares worth 486 billion yen were traded and in the second section 139 million shares valued at 1.4 billion yen changed hands.

Of the Nikkei 225 stocks, 165 rose, 52 declined, and 8 were unchanged. Sompo Japan Insurance led gainers in the index shares with a rise of 9.2% followed by GS Yuasa Corp. gaining 8.6%.

Japan''s Exports Fall 26.7%

Japan''s Ministry of Finance reported today that the country''s exports dropped 26.7% to 5.3 trillion yen in November on deteriorating conditions on the global financial market. Economists had earlier forecasted a fall of 22.3%.

Exports to the Japan''s biggest export market U.S. fell 34%, marking the 15th consecutive monthly decline from a year ago.

Among shipments to the U.S., vehicle exports plunged 44% and shipments of auto parts dropped 40% and audio equipment declined 48%.

Exports to Asia fell the most in 22 years, dropped 27% and exports to China fell 25%.

In addition, shipments to the European Union tumbled 30.8%, and vehicle shipments declined 37%.

The finance ministry also said imports fell 14.4% on the year to 5.6 trillion yen in the period, yielding a trade deficit of 223.4 billion yen.

Toyota Cuts Net Income Forecast by 91%

Toyota Motor Co. today slashed its net income forecast in the fiscal year through March 2009 by 91% to 50 billion yen and projected an operating loss of 150 billion yen from the previous estimate of 600 billion yen.

The company cut its vehicle sales projection by 8.5% to 7.54 million units in the period and lowered its North American sales estimate by 10% to 2.17 million vehicles sales.

Vehicles sales in Japan were revised to 2.01 million units and in Europe to 1.04 million.

Also fiscal annual sales forecast was downgraded by 18% to 21.5 trillion from an earlier projection of 23 trillion yen.

Gainers & Losers

Sompo Japan Insurance Co. led advancers in the Nikkei 225 index shares with a rise of 9.2% followed by increases in GS Yuasa Corp. of 8.6%, in Ricoh Co. Ltd. of 7.9%, in Nomura Holdings of 7.6%, and Chiyoda Corp. of 7.5%.

Mitsubishi Chemicals led decliners in the Nikkei 225 index shares with a fall of 6.4% followed by losses in Nippon Kayaku of 5.6%, in Tokyu Land Corp. of 4.2%, in Denki Kagaku of 4.2%, and Hitachi Ltd. of 3.7%.

Fuji to Shed 2,000 Temporary Jobs

Japan Today reported that Fuji Electric Holdings Co. will shed 2,000 temporary jobs out of the 6,900 temporary workers by September next year.

The company is also considering shaving off 19,000 regular staff and cut executive pay as part of a restructure to save costs.