Honda Motor Company, the second larger automaker in Japan, reported in Tokyo today a net loss of almost $2 billion, ¥186.1 billion, for its fiscal fourth quarter ending March 31, 2009. The loss was, not surprisingly, attributed to a global decline in demand for its fuel-efficient vehicles.
Honda still managed to show a profit for the full year of $1.46 billion, ¥137.0 billion, a decrease of 77% compared to the previous a year. Honda is, however, predicting a further decline in results next year to ¥40 billion, a 71% decrease, as the effects of the global Great Recession drag on. Competing Japanese companies, Toyota and Nissan, are expected to post large, full-year losses this year.
Honda sales this year, except for Motorcycles, declined. Motorcycles, at 10.114 million units, rose +8.5%; Automobiles, at 3.517 million units were off -10.4%; and Power Products, 5.187 million units, declined -14.4%.
Next year, Honda predicts that Motorcycle sales will decline to 8.595 million units or -15%; Automobiles will go down to 3.21 million units, -8.7%; Power Products will be off -10.2%, at 4.66 million units. (more…)