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Posts Tagged ‘honda cuts forecast’

Honda Earnings Hammered By Recalls, Weak Japan Sales

Maker also cuts forecast for full fiscal year.

by on Jan.30, 2015

A 2002 Honda Civic. One of millions of Hondas equipped with suspect Takata airbags.

Honda earnings took a sharp tumble during the most recent quarter, hammered by a variety of problems including the maker’s airbag recalls, as well as sluggish sales in its home Japanese market.

The maker announced the 15% decrease in net income a day after it said it received reports of two more drivers, including one in Houston, who may have been killed by flying debris caused by the explosive malfunction of its airbags.

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Honda has been forced to recall millions of vehicles using the supplemental restraint systems produced by supplier Takata. It also had to fix problems with its new Fit subcompact. Analysts have estimated the recalls have cost Honda about $255 million, or 30 billion yen – though the maker did not break out details.

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Honda Earnings Up, but Maker Lowers Full-Year Forecast

Takata and other problems loom for Japan’s third-largest maker.

by on Oct.28, 2014

Honda recently confirmed plans to add the HR-V - shown in concept form - to its line-up.

Honda profits surged during the July-to-September quarter, but the third-largest Japanese automaker nonetheless lowered its full-year forecast reflecting a variety of potential problems ahead.

Helped by a weak yen, Honda Motor Co. reported net earnings of 141.8 billion yen, or $1.3 billion, for the second quarter of the Japanese fiscal year. Sales, meanwhile, increased by 4%, to 3.015 trillion yen, or $27.9 billion.

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Honda is among the Japanese makers to benefit from a weak yen which it credited for boosting revenues by 123 billion yen, or $1.1 billion during the latest quarter. But that exchange rate enhancement isn’t expected to continue, industry analysts warn, while Honda warned it faces a “difficult business environment” that includes sluggish demand in Asia.

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