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Posts Tagged ‘honda earnings 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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Honda Profits Jump 36% – But Maker Lowers Full-Year Forecast

Honda anticipates problems due to Chinese boycott.

by on Oct.29, 2012

The success of the new Honda Accord will be critical to the maker's earnings turnaround.

Honda came roaring back with a 36% increase earnings for the July – September quarter, marking a significant turnaround from the hammering it took a year earlier in the week of Japan’s devastating earthquake and tsunami.

The maker delivered an 82.2 billion yen net profit – which works out to an even $1 billion – with sales climbing 20% for the quarter to 2.27 trillion yen.

But the near-term future may not be quite so rosy. Honda sales tumbled more than 40% in the key Chinese market during September, and the maker expects an ongoing boycott to hammer both sales and earnings in the months ahead.

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Warning it must factor in the “recent situation in China,” Honda officials warned that overall sales for the current fiscal year – which ends next March 31 – will likely reach just 4.1 million. That’s about 180,000 less than originally anticipated – though it would still be a 1 million unit increase over 2011.

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