Business Report - Mar 16, 2010Toyota Motor Corporation (7203)
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Kohei Takahashi
at
JP MorganIt estimated that the worldwide recall, involving about 8.5 million cars, could cost up to 165' billion (R14.7bn), with 165100bn for repairs and 16580bn in lost sales. The recalls might dent global demand for
Toyota models by 100 000 vehicles, it added. 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 165500bn hit, including recall related costs and litigation settlements. He has lowered his estimate for operating profit in the financial year that starts next month to 165540bn from 165760bn, as higher profit margins in emerging markets soften the blow of recall expenses.
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It estimated that the worldwide recall, involving about 8.5 million cars, could cost up to 165' billion (R14.7bn), with 165100bn for repairs and 16580bn in lost sales. The recalls might dent global demand for <span class="company">Toyota</span> models by 100 000 vehicles, it added. 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 165500bn hit, including recall related costs and litigation settlements.</span> He has lowered his estimate for operating profit in the financial year that starts next month to 165540bn from 165760bn, as higher profit margins in emerging markets soften the blow of recall expenses.
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