Honda to register a drop in its profits
Honda Motor Co. forecast a staggering 63 percent drop in full-year profit, citing the nation's earth quake and the strong yen as possible reasons. Net income is expected to fall to 95 billion yen ($2.4 billion) in the 12 months ending March 31 from 534.1 billion yen a year earlier, the company said today. The quake hit factories and power shortages have forced the companies to work on a scaled down production capacity. Honda's global vehicle sales may decline 6 percent this year to 3.3 million, while Japan's strengthened currency will also erode profit, the company said today.
Toyota, Japan's biggest carmaker is also likely to make a 31 percent decline in its profits as the global vehicle sales decrease 0.9 percent to 7.24 million. "The outlook is worse than I expected," said Koji Endo, an analyst at Advanced Research Japan in Tokyo. "It seems as though Honda won't be able to recover in the second half, even though Toyota and Nissan may be able to."
Toyota, Japan's biggest carmaker is also likely to make a 31 percent decline in its profits as the global vehicle sales decrease 0.9 percent to 7.24 million. "The outlook is worse than I expected," said Koji Endo, an analyst at Advanced Research Japan in Tokyo. "It seems as though Honda won't be able to recover in the second half, even though Toyota and Nissan may be able to."