Toyota production picture improves

NEW YORK (CNNMoney) -- Toyota Motor took a $1.3 billion hit from the cost of the earthquake and tsunami that struck Japan in March, but the world's largest automaker said Wednesday it is moving to resume normal production sooner than previously expected.

The effect of the quake caused the company to miss its previously stated earnings target. The company said continued uncertainty about the lingering impact of the quake would prevent it from setting new production and sales targets for the upcoming 12 months, as it typically does at this time of year.
The company said production is expected to normalize in stages, starting in June both inside and outside Japan, rather than starting in July in Japan and in August outside its home country as it previously announced.
Production in June is still expected to down 30% from normal on a global basis, the company said.
"Toyota Motor Corp. (TM) is carefully monitoring the situation in each region and for each vehicle model and is every day working its hardest to identify every way to restore production as much as possible," said the company's statement. "However, it is possible that during this period of adjustment in production, reduced production levels may have a significant impact on TMC's business results."
Even with the hit from the disaster in Japan, the company's operating income for the fiscal year ending March 31 rose to ¥468.2 billion, or $5.4 billion, from ¥147.5 billion, or $1.6 billion, on increased global sales. But that was far below the company's previous target of full-year operating earnings of ¥550 billion, or $6.4 billion.