Investors Bid Up Toyota’s Competition

Toyota Motor Company (NYSE:TM) has suffered major setbacks in its earnings outlook this year. The car manufacturer has been hit especially hard by the flooding in Thailand and rapidly appreciating yen (NYSE:FXY).

Consequently, Toyota revised downward its estimates for the fiscal year. The company now expects a net profit of 180 billion yen against the earlier projection of 390 billion yen on sales of 18.2 trillion yen (projected 19 trillion yen) with vehicle unit sales at 7.38 million opposite 7.60 million.

Toyota’s production woes during the quarter have rendered it vulnerable to losing its position as the top-selling global auto maker to GM (NYSE:GM) and possibly Volkswagen. “Toyota is hitting a trough,” said Cho Soo-Hong, auto analyst at Woori Investment & Securities in Seoul. “Its market share will recover next year with output normalization and new model launches, but I don’t expect too much from Toyota’s earnings as the yen is expected to remain strong because of appetite for safe-haven assets.”

Production is expected to normalize soon, but what about the yen? CFO Satoshi Ozawa said, “(The revision) is partly because Toyota’s exposure to currency swings is big, but I think it also brought to light the severity of the crisis Japan is in, because the country is founded on its export strength.”

Ozawa said Toyota was compelled by the strong yen to raise car prices significantly in some markets, at the cost of a hit to volumes.

Here’s how car manufacturer stocks are trading on the news:

Toyota Motor Corp. (NYSE:TM): TM shares recently traded at $68.39, up $1.26, or 1.88%. They have traded in a 52-week range of $60.37 to $93.90. Volume today was 397,105 shares versus a 3-month average volume of 538,753 shares. The company’s trailing P/E is 41.55, while trailing earnings are $1.65 per share. Get the most recent company news and stock data here >>

General Motors Corporation (NYSE:GM): GM shares recently traded at $21.31, up $0.33, or 1.57%. They have traded in a 52-week range of $19.05 to $39.48. Volume today was 2,894,829 shares versus a 3-month average volume of 12,428,600 shares. The company’s trailing P/E is 4.66, while trailing earnings are $4.57 per share. Get the most recent company news and stock data here >>

Ford Motor Co. (NYSE:F): F shares recently traded at $11.06, up $0.31, or 2.88%. They have traded in a 52-week range of $9.05 to $18.97. Volume today was 23,636,226 shares versus a 3-month average volume of 63,128,100 shares. The company’s trailing P/E is 6.63, while trailing earnings are $1.67 per share. Get the most recent company news and stock data here >>

Honda Motor Co., Ltd. (NYSE:HMC): HMC shares recently traded at $31.59, up $0.65, or 2.1%. They have traded in a 52-week range of $27.52 to $44.56. Volume today was 235,712 shares versus a 3-month average volume of 689,483 shares. The company’s trailing P/E is 20.29, while trailing earnings are $1.56 per share. Get the most recent company news and stock data here >>

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