Toyota (TM) Gets Ambitious for FY12, Will Investors Bite?
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Toyota (NYSE: TM) is set to return to prominence, as it returns better gains to investors.
According to reports Thursday, Toyota is forecasting a 20 percent increase in global sales for calendar 2012, to 8.48 million vehicles, as operations and suppliers return to normal output.
In 2008, Toyota overtook General Motors (NYSE: GM) as the number one global auto manufacturer. Following the earthquake in Japan and flooding in Thailand this year, that effort has been challenged. Toyota is forecast to sell just 7.90 million vehicles in 2011, across all of its groups. The number puts it currently behind GM and Volkswagen AG, according to data from Reuters.
The current outlook beats record sales set in 2007, when 8.43 million shipped.
One concern is the strengthening of the yen. In 2007, the yen was valued at more than double what it is currently. Toyota has earlier said it would shift some production to the U.S., as well as Brazil and China.
Earlier Thursday, Moody's Japan K.K. affirmed the Aa3 long-term senior unsecured and issuer ratings of Toyota Motor Corporation(Toyota) and its subsidiaries, but changed the rating outlook to negative from stable. Rational behind the move was, "The change in outlook reflects the likelihood that the recovery in Toyota's profitability will be more protracted than anticipated due to the company's significant exposure to the strong Yen.
This foreign-exchange pressure is compounded by eroding macro-economic conditions in certain core markets, and Toyota's weaker competitive position following product quality issues."
So, will investors grab on for the ride? With Toyota shares dropping from a yearly high of about $93 last February, ahead of the March 11th earthquake in Japan, getting back to that level means about 45 percent of upside. Also remember that Toyota was north of $130 in 2007, the height of it's sales boom. That would mean shares could more than double over the next year or two as investor confidence, and more importantly sales, return.
Toyota shares are up about 0.1 percent early.
According to reports Thursday, Toyota is forecasting a 20 percent increase in global sales for calendar 2012, to 8.48 million vehicles, as operations and suppliers return to normal output.
In 2008, Toyota overtook General Motors (NYSE: GM) as the number one global auto manufacturer. Following the earthquake in Japan and flooding in Thailand this year, that effort has been challenged. Toyota is forecast to sell just 7.90 million vehicles in 2011, across all of its groups. The number puts it currently behind GM and Volkswagen AG, according to data from Reuters.
The current outlook beats record sales set in 2007, when 8.43 million shipped.
One concern is the strengthening of the yen. In 2007, the yen was valued at more than double what it is currently. Toyota has earlier said it would shift some production to the U.S., as well as Brazil and China.
Earlier Thursday, Moody's Japan K.K. affirmed the Aa3 long-term senior unsecured and issuer ratings of Toyota Motor Corporation(Toyota) and its subsidiaries, but changed the rating outlook to negative from stable. Rational behind the move was, "The change in outlook reflects the likelihood that the recovery in Toyota's profitability will be more protracted than anticipated due to the company's significant exposure to the strong Yen.
This foreign-exchange pressure is compounded by eroding macro-economic conditions in certain core markets, and Toyota's weaker competitive position following product quality issues."
So, will investors grab on for the ride? With Toyota shares dropping from a yearly high of about $93 last February, ahead of the March 11th earthquake in Japan, getting back to that level means about 45 percent of upside. Also remember that Toyota was north of $130 in 2007, the height of it's sales boom. That would mean shares could more than double over the next year or two as investor confidence, and more importantly sales, return.
Toyota shares are up about 0.1 percent early.
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