Honda 9-month net profit falls 71%, cuts forecasts
Honda Motor's net profit for the nine months to December slumped by almost three-quarters from the previous year due to Japan's March disasters, huge floods in Thailand, and the high yen, it said today.autos Updated: Jan 31, 2012 14:38 IST
Honda Motor's net profit for the nine months to December slumped by almost three-quarters from the previous year due to Japan's March disasters, huge floods in Thailand, and the high yen, it said Tuesday.
Net profit for the period fell 71.4% to 139.89 billion yen ($1.84 billion) from 489.53 billion yen, Honda said.
Sales were down 17.6% to 5.54 trillion yen and operating profit fell 77.2% to 119.39 billion yen.
Japanese automakers, including Honda, saw extensive damage to their supply chains as a result of the March earthquake and tsunami in Japan and flooding in Thailand in the autumn.
A high yen also ate into exporters' sales and profits, including Honda.
Honda's operating profit fell due primarily to a decrease in sales, increasing fixed costs, rising raw material prices and the high yen.
Its mainstay global automobile sales dropped by 19.0% in volume terms, more than offsetting increased motorcycle sales in Asia, South America and other regions and depressing overall earnings.
The company, which had previously held off giving forecasts for the year to March due to uncertainty related to the Thai flooding, said it expected annual net profit to fall to 215 billion yen, down 59.7% from the previous year.
Annual operating profit is expected at 200 billion yen, down 64.9 percent from a year ago, on sales of 7.85 trillion yen, down 12.2%.
It cut its global full-year sales forecast by more than 8%, from 3.435 million vehicles to 3.15 million.
First Published: Jan 31, 2012 14:36 IST