Toyota's projected op earnings bigger than GM's market cap
Posted by: Ian Rowley on November 07
Wednesdays’s contrasting results announcements once again highlighted the
huge earnings gulf between Toyota and GM. For the six months through
September, Toyota’s operating earnings rose 16.3% to $11.2 billion, while GM
posted a huge $39 billion loss.
But perhaps even more disturbing is that after stock falls at GM, and an
upward revison to Toyota’s earnings, the Japanese company’s expected
operating profits for this year are now greater than GM’s market cap.
At yesterday’s results announcement in Tokyo, finance chief Takeshi Suzuki
said that Toyota now expects to make operating profits of $20.2 billion this
financial year, $440 million higher than earlier stated and a figure still
considered conservative by analysts. By the end of Wednesday trading, which
saw GM’s stock price plunge 6% to $33.95, the market valued the world’s
biggest automaker at just $19.21 billion.
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