Tuesday, August 2, 2011

Honda's quarterly profit plunges on disaster

TOKYO (AP) ? Honda's quarterly profit plunged nearly 90 percent after the quake in northeastern Japan disrupted production and sales, but the automaker raised full-year forecasts as its confidence in a recovery mounts.

Honda Motor Co. said Monday its April-June profit tumbled to 31.7 billion yen ($406 million) from 272.4 billion yen profit a year earlier. Japan's No. 3 automaker said it managed to remain in the black thanks to its growing motorcycle business.

Tokyo-based Honda, which makes the Odyssey minivan and Fit subcompact, now expects a 230 billion yen ($2.9 billion) profit for the fiscal year ending March 2012.

That is less than half of Honda's 534 billion yen profit in the previous fiscal year, but is better than the 195 billion yen ($2.5 billion) it forecast in June.

Honda also raised its annual sales projection to 8.7 trillion yen ($112 billion), down 3 percent from the previous year, but better than the 8.3 trillion yen ($106 billion) it expected in June.

The manufacturer expects to sell 3.435 million vehicles worldwide, some 135,000 more than it had given as its forecast in June. It sold 3.512 million vehicles the previous fiscal year.

Honda's motorcycle business is booming, and the automaker expects to sell 12.7 million motorcycles for the fiscal year through March 2012, up from 11.45 million the previous year. That's also better than its earlier forecast to sell 12.645 million motorcycles this fiscal year.

Production at all Japan's automakers was disrupted after parts suppliers were damaged in northeastern Japan.

But they are saying recovery is coming quicker than expected, and production levels are projected to return to normal later this year.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/f70471f764144b2fab526d39972d37b3/Article_2011-08-01-AS-Japan-Earns-Honda/id-ec301d3d819f457fab53dfe06823a886

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