By Peter Landers
TOKYO-- Toyota Motor Corp. forecast revenue would fall 20% this fiscal year because of the new coronavirus, but it said its operations would manage to stay in the black.
Japan's biggest auto maker by sales said it expected the car market to bottom out by June and return to the same level as the previous year by the end of 2020. But it said the impact of the coronavirus pandemic is "wide-ranging, significant and serious, and it is expected that weakness will continue for the time being."
The auto maker predicted revenue in the current fiscal year, which ends in March 2021, would fall 20% to Yen24 trillion ($223 billion), while it said operating profit would fall 79.5% to Yen500 billion. It didn't offer a forecast for net profit.
It predicted total retail vehicle sales would fall 15% to 8.9 million, generally in line with industry forecasts that the coronavirus is likely to cause global auto sales to plunge this year.
Toyota managed to eke out a profit in the January-March quarter despite reduced vehicle sales and write-downs connected to the new coronavirus. For the full fiscal year ended in March, net profit rose 10% to Yen2.1 trillion while revenue fell 1% to Yen29.9 trillion.
Toyota said it has started tapping new credit lines with Japanese financial institutions totaling Yen1.25 trillion to shore up its cash position in light of the coronavirus risk.
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