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Toyota's profits plunge by 99%

  • Hit by earthquake and tsunami
  • Outlook is optimistic, though
  • 4000 temporary jobs to be created
Words By Pete Barden

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Toyota's quarterly profits have plummeted by 99% because of the earthquake and tsunami that hit Japan in March.

Profits for the three months to the end of June plunged to 1.1 billion yen (8.7 million) from 190.4 billion yen last year.

The huge drop in profits has been blamed on the shortage of parts used to manufacture its cars around the world.

Improved outlook
Toyota has, however, increased its forecast for full-year sales and profits. The company said it was rebuilding its operation faster than expected and increased net profit forecasts from 280 billion yen to 390 billion yen.

The company has also said it will create 4000 temporary jobs in Japan to help increase its production capacity while it recovers from the earthquake and tsunami.