Automotive News [sub] reports Toyota’s profits are set to slide 40 percent when the firm announces its annual numbers. At issue: exposure to weak American sales and a slowdown in China. And though reaping just over half its expected profits sounds like bad news, ToMoCo will still pull down $12.8b this year. Needless to say, that’s a mighty impressive accomplishment for a firm that’s so dependent on flagging US sales. Koichi Ogawa, chief portfolio manager at Daiwa Asset Management, says Toyota is still on solid ground. “Given that the price of fuel and some raw materials is falling, earnings in the auto sector are likely to start to recover in six months to a year. This could be a good buying opportunity for long-term investors.” A quick look at Toyota stock shows it’s fallen steadily from its longtime high of $137/share in February of 2007. It’s still dropping, currently trading at about $65. Still… with a rock-solid 6.5 price-to-earnings ratio, and a portfolio that includes massive investments in hybrid and electric technology, Toyota is no GM or Ford. No siree.
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And yet the bashers on the stock message boards are having a field day. “I told you so!” is common.
But they shut up when you point out that they’re still earning billions in net profit vs. well, how long ago did GM, F, et al, have a profitable year?
Wait, this is Toyota we’re talking about. Nothing to see here, move along, people!
Gee Quasi, do you see a problem with a company that can turn a 12b profit in a down year?
If it were GM breaking even all the psychophants would be proclaiming the “second coming”.
This is an excellent example of how a well run company with good, relevant products can go through the “hard times” and make it look easy.
Just a thouhgt.
Bunter
Yes, yes, flowers and dandelions, everything is just beautiful, business as usual at jolly good Toyota.
Wait until the protectionism kicks in– and it will. You can’t fleece people too terribly long before they can’t be fleeced anymore. Selling their Sebring copy to as many people as they have, well–
it’s coming.
Less Camrys clogging up our streets can’t be a bad thing. :)
Looks like profit envy.
That’s a funny comment, iNeon, when you stop to realize that my last “American” car was a 1999 Dodge Neon (hecho en Mexico) and my current “Foreign” car is a Hyundai Sonata, manufactured in Montgomery, Alabama.
menno, you have to be careful when using words like ‘built’ and ‘manufactured’ when talking about the origin of certain cars. ‘Assembled’ is a better word because the actual content of ‘American’ parts in a vehicle varies quite a bit.
Does anyone give a shit about the big 3 anymore? It’s been 20 years since the last fit of protectionism… since most people would be indicting themselves of being unamerican… I don’t think you’re going to see the same level of Toyota hate you did in 1990.
Toyota service treadted me from fairly up to very finely.
Chevy service spat upon me, repeatedly.
I hope Chevy/GMC rusts in peace.
My only regret is that the minority at the top of the GMC hierarchy will live lives of luxury while, as typical, the common folks suffer.
The class war continues.