Toyota: earnings hit but priority is Japan recovery

Toyota: earnings hit but priority is Japan recovery: TOYOTA CITY, Japan – Toyota Motor Corp (7203.T) President Akio Toyoda said on Friday that

the devastating earthquake and tsunami in northeast Japan would hurt the company's earnings,

but said that was not on his list of priorities.

"We do not believe that the numbers at this time," Toyoda said the company's headquarters in

Toyota City, and said he could not estimate the magnitude of impact.

"The priority now is security for victims of disasters and help bring back to normal as

quickly as possible to restore hope," he said after addressing the new tenant at a ceremony

to mark their first day.

Deutsche Securities, this week cut its forecast for operating profit of Toyota's 84 percent

to 1.7 billion for this fiscal year due to production outages.

Toyoda repeated the company's position that she does not know when you can resume full

production after the March 11 disaster disrupted the supply chain.

The world's largest automaker ceased production of vehicles with the exception of two of the

18 factories of the group to build the Toyota and Lexus cars in Japan. In both plants, is

the assembly of a limited number of three hybrid models at a reduced price.

"This time, everything in Japan is affected," Toyoda said. "Rather than thinking about the

automaker's recovery, we want to reflect on how we can help restore the lifeline of the

infrastructure of this region."

departure ceremony for new employees "with a moment of silence for the victims of the

disaster, Toyoda spent the first few minutes talking about the need for Toyota to help

restore their damaged communities in northern and contribute to the recovery of the nation .

Toyoda, who visited the affected areas earlier this week, told reporters that Toyota may

remain attached to the northeast, Tohoku, which began building its manufacturing base as the

third in Japan several years ago.

"This is the resumption of Japan," he said. He added that the blackouts would be unavoidable

during the summer season, and there was a limit to what a company can do to resume normal

operations.

Global supply concern

Toyota is certainly not the only automaker suffers from the effects of the disaster in

Japan. Companies worldwide have slowed the plants due to the blast of a lack of parts and

many are able to resume limited production.

Honda Motor Co. (7267.T) and Mazda Motor Corp (7261.T) on Thursday became the latest major

automakers said they would continue some manufacturing in Japan.

Honda said it will resume production of parts for use abroad of April 4 and the production

of all 11 car factories in April. The action will continue around 50 per cent of the initial

plan.

Honda also said production cuts at its factories in the United States and Canada was to last

until 15 April. The company warned that production could be disrupted again after that date

due to "uncertainty" surrounding the supply of parts from Japan.

Honda has not yet decided when it will resume operation at full scale, a spokesman for the

company. She also declined to say what models it will produce.

Mazda Motor Corp. said it intends to resume limited production vehicles from April 4 in

Hiroshima and Hofu plants. The decision on the resumption of large-scale production of two

vehicles and parts were not.

A Mazda spokesman declined to say whether the parts it uses is manufactured by suppliers, or

if they move out of inventory from suppliers. Mazda has also refused to comment on models

that start to happen, or how much.

In recovery operations, Honda and Mazda follow rival manufacturers Suzuki Motor Corp.

(7269.T) and Fuji Heavy Industries Co (7270.T), the maker of Subaru automobiles, both

partial production has restarted on Thursday.

United States, as well as General Motors Co. (GM.N) and Ford Motor Co. or closed factories

and slowing production because they do not share.

About 13 percent of worldwide auto output has been lost due to parts shortages and IHS

Automotive has estimated this may cut output by as much as 30 percent within six weeks in a

worst-case scenario.