Toyota's September Sales May Disappoint

Toyota Motor president Katsuaki Watanabe said he does not want to "lower the flag yet" in Japan for full-year sales, despite trailing every month y/y through July. Watanabe is hopeful new models released since June will boost sales. In the U.S., Sept. sales will likely disappoint due to softening demand and a tough y/y comparison. Toyota executive VP Mitsuo Kinoshita warned it will be difficult to top the 25% growth of last September. Toyota's U.S. sales fell in July for the first time in three years, and also declined in August (full story). Still, Toyota expects to achieve full-year sales growth (last targeted at 5%) in the U.S. The company's home market full-year goal is for 1% higher sales to 1.72 million vehicles. Regarding the UAW strike against GM, Kinoshita said, "We need to monitor negotiations by the U.S. Big Three makers, but we are not under pressure to review our contracts immediately." Separately, Sony will purchase Toyota Industries Corp.'s (a Toyota subsidiary) stake in an LCD joint venture and merge it with another Sony/TIC JV -- both JVs manufacture camera and phone displays. Ordinary shares of Toyota lost 0.45% to ¥6,610 on Wednesday. Toyota's ADRs rose 0.6% to $115.30 on Tuesday.

Sources: Reuters I, II, Thomson-Newstex
Commentary: Japan's Trade Surplus Surges on Auto, Steel Demand • Chrysler Snatches Top Toyota Exec. • Merrill Likes Toyota Even With Strong Yen
Stocks/ETFs to watch: TM, SNE. Competitors: NSANY, HMC, GM, F, DCX. ETFs: EWJ, ADRA

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