Toyota reports worst annual loss

Toyota, the world's biggest carmaker, has made its worst annual loss as the global economic downturn has hit demand for its vehicles.

The Japanese company said it made a net loss of 436.94bn yen ($4.4bn; £2.9bn) in the year to 31 March, compared with a record profit the year before.

Toyota said expected to make a bigger loss in the current financial year.

Like many of its rivals, Toyota has cut production, including at its UK plants, as sales have declined.

Toyota also blamed the loss on high raw materials prices and a strong yen, which makes its cars more expensive overseas.

"Both revenues and profits declined severely during this period," said Toyota president Katsuaki Watanabe.

He said the loss "was a consequence of the significant deterioration in vehicle sales, particularly in the US and Europe".

Toyota said it expected to make a net loss of 550bn yen ($5.5bn; £3.7bn) in the financial year ending in March 2010.