Honda slashes forecasts even though profit soars
Source: Agencies |
October 30, 2012, Tuesday
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Print Edition
Print Edition
HONDA'S quarterly profit surged 36 percent as Japanese automakers bounced back from last year's tsunami and earthquake disaster in northeastern Japan, but the company lowered its annual forecasts yesterday because of a sales plunge in China.
Honda Motor Co raked in an 82.2 billion yen (US$1 billion) net profit for the July-September quarter. Sales jumped 20 percent to 2.27 trillion yen.
Honda has recovered strongly after being hit hard by the March 2011 earthquake and tsunami disaster that disrupted car production, and the floods in Thailand later that year.
But the Tokyo-based manufacturer of the Accord sedan, Fit compact and Asimo humanoid robot lowered its forecasts for the business year through March 2013. It cited the recent sales drop in China sparked by a territorial dispute that has set off protests in parts of China and a call to boycott Japanese goods.
It now expects to sell 4.1 million vehicles in the year through March 2013, down about 180,000 from the earlier projection to sell 4.3 million vehicles.
Still, that number is an improvement of more than a million vehicles over the 3.1 million Honda sold globally in the previous disaster-struck year.
Honda sold 996,000 vehicles during the fiscal second quarter, up from 678,000 vehicles a year earlier.
Honda said it must factor in the "recent situation in China," as well as declining sales in Europe and South America, in forecasts for the full year.
The negative effect of an unfavorable currency is also expected to weigh, Honda said. A strong yen hurts the earnings of Japanese exporters.
Honda Motor Co raked in an 82.2 billion yen (US$1 billion) net profit for the July-September quarter. Sales jumped 20 percent to 2.27 trillion yen.
Honda has recovered strongly after being hit hard by the March 2011 earthquake and tsunami disaster that disrupted car production, and the floods in Thailand later that year.
But the Tokyo-based manufacturer of the Accord sedan, Fit compact and Asimo humanoid robot lowered its forecasts for the business year through March 2013. It cited the recent sales drop in China sparked by a territorial dispute that has set off protests in parts of China and a call to boycott Japanese goods.
It now expects to sell 4.1 million vehicles in the year through March 2013, down about 180,000 from the earlier projection to sell 4.3 million vehicles.
Still, that number is an improvement of more than a million vehicles over the 3.1 million Honda sold globally in the previous disaster-struck year.
Honda sold 996,000 vehicles during the fiscal second quarter, up from 678,000 vehicles a year earlier.
Honda said it must factor in the "recent situation in China," as well as declining sales in Europe and South America, in forecasts for the full year.
The negative effect of an unfavorable currency is also expected to weigh, Honda said. A strong yen hurts the earnings of Japanese exporters.
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