TOKYO -- Toyota Motor Corp. tumbled to its first operating loss in 71 years in the fiscal year just past, and outgoing President Katsuaki Watanabe warned the automaker faces even worse losses this year despite a campaign to slash $8.22 billion in costs.
Stung by the global meltdown, Toyota slumped to an operating loss of ¥461.0 billion, or $4.74 billion at current exchange rates, in the fiscal year that ended March 31, Toyota said.
The result was slightly worse than the $4.63 billion loss Toyota had predicted in February and a stunning about-face from a record operating profit of $23.33 billion a year before.
Watanabe projected that the loss will widen to $8.74 billion in the current fiscal year on plunging sales and unfavorable exchange rates.
Toyota did not say why it projects a narrower net loss of $5.65 billion. Toyota slumped to a net loss of $4.49 billion from record net income of $17.66 billion a year earlier.
In the latest quarter, Toyota's net loss of $7.87 billion surpassed General Motors' net loss of $5.97 billion.