Forbes - 9 minutes ago
Toyota Motor Corporation (7203)
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Kohei Takahashi
at
JP MorganIt estimated that the worldwide recall, now involving some 8.5 million cars, could cost up to 180 billion yen ($2 billion), with 100 billion yen for repairs and 80 billion yen in lost sales. It said the recalls may dent global demand for
Toyota models by 100,000 vehicles. Analysts with their own estimates say the total is bound to climb higher.
JP Morgan's Kohei Takahashi expects Toyota to take a one time 500 billion yen ($5.5 billion) hit, including recall related costs and litigation settlements. He has lowered his estimate for operating profit next fiscal year starting April to 540 billion yen ($5.9 billion) from 760 billion yen, as higher profit margins in emerging markets soften the blow of recall expenses.
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It estimated that the worldwide recall, now involving some 8.5 million cars, could cost up to 180 billion yen ($2 billion), with 100 billion yen for repairs and 80 billion yen in lost sales. It said the recalls may dent global demand for <span class="company">Toyota</span> models by 100,000 vehicles. Analysts with their own estimates say the total is bound to climb higher.<span class="sent"> JP Morgan's <span class="analyst">Kohei Takahashi</span> expects <span class="company">Toyota</span> to take a one time 500 billion yen ($5.5 billion) hit, including recall related costs and litigation settlements.</span> He has lowered his estimate for operating profit next fiscal year starting April to 540 billion yen ($5.9 billion) from 760 billion yen, as higher profit margins in emerging markets soften the blow of recall expenses.
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