Toyota profits plunge after earthquake disruption

Toyota has increased its forecast for full-year sales.
Toyota Motor has reported a 99% drop in quarterly profits because of the impact of March's earthquake and tsunami.
Net profit for the three months to the end of June fell to 1.1bn yen ($14.2m; £8.7m) from 190.4bn yen last year.
Toyota was hit by a shortage of parts around the world due to the damage caused to Japan's supply chain by the natural disasters.
Despite falling first quarter sales, Toyota increased its forecast for full-year sales and profits.
It said it was recovering from the tsunami faster than expected, and raised its full-year forecast for net profit from 280bn yen to 390bn yen.
Toyota also raised its forecast for full-year sales from 7.2 million to 7.6 million vehicles.
It is hiring as many as 4,000 temporary workers in Japan to help it make up for lost production.
Cost cutting
In addition to the disruption caused by March's tsunami, Toyota has also been hit by the strength of the yen.
The company's forecasts for the year to the end of March were based on an exchange rate of 82 yen to the US dollar, but it is currently about 77.3 yen to the dollar.
That is a particular problem for Toyota, which exports more than half of the vehicles it produces in Japan.
"Toyota remains committed to pursuing an improvement of its earnings structure globally through cost reduction activities in which it has strong track record, and to utilizing every opportunity to increase production and sales outlook," said Toyota Motor senior managing officer Takahiko Ijichi Toyota output and sales dip in first half of the year”.
Toyota's Japanese factories are expected to return to full capacity by the end of the year
Toyota's output and sales in Japan dipped in the first half of the year in wake of the earthquake and tsunami.
Production dropped 38%, while sales slumped 41% in the six months to June, from a year ago, the company said.
Toyota was hit by a shortage of parts due to the damage caused to Japan's supply chain by the natural disasters.
Exports in the first half of the year also declined for the first time in two years as shipments to key markets such as North America decreased.
While its factories have been running at reduced output, the carmaker said that its domestic and overseas production levels will return to full production by the end of the year.
Toyota also added that it plans to produce an additional 350,000 vehicles from October through to March 2012 to make up for lost production.