Toyota triples year loss forecast

06 February, 2009 - Published 14:10 GMT

Toyota is now the world's largest car maker, but only because sales at its great rival General Motors have plunged even more quickly.

The Japanese company is now forecasting an operating loss of 4.9 billion dollars by the end of the financial year.

The announcement came as Toyota posted quarterly results showing it made an operating loss of four billion dollars in October to December alone. It's the first time in its seventy year history it's gone into the red and comes after years of record profits.

Japan's exporters are being hit hard by the global economic downturn, and in recent days a string of big name companies have made grim results announcements. Demand is falling around the world for their electronics, machinery and cars. Japanese companies are being hurt further by the strength of the yen, which makes them less competitive and erodes the value of their earnings abroad.

Roland Buerk, BBC News, Tokyo

rival
a person or company competing in the same area or industry

plunged
fallen suddenly

forecasting
'to forecast' means to say what you expect to happen in the future

posted quarterly results
made their financial profits or losses (over a period of three months) available to the public

made an operating loss
failed to make a profit despite still trading

gone into the red
fallen into debt

record profits
making more money than ever before

grim
without hope

Demand is falling
the need or desire for something is becoming less

erodes
decreases gradually