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Posts Tagged ‘honda profit’

Honda Boosts Quarterly Earnings Despite Cost of Takata Recalls

Honda ends ties with Takata in wake of airbag scandal.

by on Nov.04, 2015

Honda showed off its new fuel-cell vehicles, the Clarity, at the Tokyo Motor Show last week.

Honda quarterly earnings rose 7%, to 127.7 billion yen, or $1 billion, from a year earlier despite the hefty cost of repairing vehicles using potentially deadly Takata aibags.

The third-largest of the Japanese makers released results for the July-September period, the second in its fiscal year, a day after it announced it would no longer work with Takata, long one of its most important suppliers under the so-called keiretsu system.

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“We have become aware of evidence that suggests that Takata misrepresented and manipulated test data for certain air bag inflators,” Honda explained on Tuesday. “Honda expects its suppliers to act with integrity at all times, and we are deeply troubled by this apparent behavior by one of our suppliers.”


Recalls Hammer Honda Earnings

Japanese maker’s net income tumbles 43%.

by on Apr.29, 2015

A Takata airbag after a crash.

The recall crisis that reached record levels last year has continued to hammer the auto industry, as Honda shows with the release of its weak, January-to-March earnings report.

The recall of vehicles equipped with potentially faulty Takata airbags led to a 43% year-over-year decline in the maker’s bottom line for the fourth quarter of its fiscal year. At $814 million, or 45 cents per share, the net income was well short of the market forecast of 59 cents a share, according to Zacks Consensus Estimate.

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But Honda laid out a more upbeat forecast for the year ahead, projecting a nearly 10% increase in revenues and a more modest 0.4% increase in net income for the 2016 fiscal year.


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.


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.


Honda Records Q4 Profit of $1.67 Billion

by on Apr.25, 2014

Honda reported significantly improved Q4 and full year profits today based on a weak yen and strong auto sales around the world.

Honda rode the benefits of its own peculiar “double play” of a weak yen and strong sales to an impressive fourth quarter result. However, the positive impact of the yen is going to decline going forward, the company said.

The automaker reported a quarterly profit of $1.67 billion (170.5 billion yen) compared with less than $800 million (75.5 billion yen) during the same period a year ago. Honda reported sales increased 13% to $30 billion, or 3.1 trillion yen.

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Japanese buyers seeking to beat an April 1 rise in sales taxes helped push Honda to 1.2 million vehicles sold during the quarter, which was nearly 200,000 units more than last year. (more…)

Honda Doubles Earnings

Maker gets big boost from weakened yen.

by on Jan.31, 2014

Strong demand for products like the Honda Civic Coupe combined with a weak yen to double quarterly earnings.

Honda more than doubled its quarterly earnings, much of that gain driven by the weak yen, while also picking up momentum in key markets including North America.

The maker reports it earned 160.7 billion yen, or $1.58 billion for the October-December period – its fiscal third quarter – compared with a 77.4 billion net profit during the same period a year ago.

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Honda has been steadily expanding its global manufacturing operations – it now produces about nine of every ten vehicles sold in North America in the region – but favorable exchange rates nonetheless helped the third-largest Japanese maker deliver such a strong quarter, the weak yen credited with adding $4.2 billion, or 425 billion yen, to its revenues for the quarter.


Honda Earnings Slide Despite Global Sales Increase

Mazda, meanwhile, surges back into the black.

by on Jul.31, 2013

Despite strong U.S. sales of models like the new Accord, Honda's bottom line results disappointed analysts and investors.

Honda’s bottom line took an unexpected hit during the latest quarter, the third-largest Japanese maker reporting that earnings slid 7% compared to the year before despite increased sales outside its home market and the boost Japanese makers, in general, have been getting from a weaker yen.

Honda reported a net profit of 122.4 billion yen, or $1.25 billion during the April-June period – the first quarter in the Japanese fiscal year. A survey of industry analysts by FactSet showed a consensus forecast of 146 billion yen, or $1.5 billion.

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“The figures were lower” than expected, Yuuki Sakurai, chief executive officer of Fukoku Capital Management Inc., told the Bloomberg news service. “The global economy is slowing down, and just because the yen is weaker doesn’t mean Japanese carmakers can sell cars.”


Honda Profits Rise in Spite of China Problems

Mazda Back in black for first time in 5 years, but Kia earnings hurt by labor dispute.

by on Apr.26, 2013

Strong U.S. demand for the new Honda Accord helped buoy the maker's earnings.

Despite slumping sales in China, the world’s largest automotive market, Honda Motor Co. managed to eke out a 6% increase in earnings for the January-March quarter – largely because the year-ago numbers were still impacted by production cuts from a series of natural disasters.

The maker also benefited from the weakening yen, and Honda CEO Takanobu Ito said he anticipates doing even better in the months ahead as exchange rates shift, reducing the penalty on Japanese-made goods.

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That was also good news for smaller rival Mazda which crept back into the black for the first time in five years — but in Korea, Kia reported Friday that a bitter labor dispute resulted in a big drop in its earnings.

Honda earned 75.7 billion yen, or $765 million, during the final quarter of its fiscal year, compared with 71.5 billion during the same period in 2012. For the full fiscal year, which ended on March 31, earnings soared 73.6% to 367.15 billion yen, or $3.7 billion. Its operating profit, meanwhile, climbed to 544.8 billion yen, up 135.5%.


Honda Earnings Rise – But Maker Issues Warning

China poses problems for Japanese maker.

by on Jan.31, 2013

Demand for the new Honda Accord helped boost the maker's global earnings last quarter.

Honda Motor Co. saw a nearly 63% surge in earnings for the October – December quarter, but the maker also issued a warning that earnings could take a tumble in the months ahead because of problems in China, now the world’s largest automotive market.

The Tokyo-based maker earned 77.4 billion yen, or $850 billion during its fiscal third quarter. That was, however, well off the 104.95 billion yen forecast of 11 analysts surveyed by the Nikkei Quick index.

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Quarterly sales rose about 25%, to 2.4 trillion yen, or $26 billion. That increase reflected the maker’s recovery from the production shortages caused the prior year by Japan’s massive earthquake and tsunami. Demand was particularly strong in the North American market. But it also fell short in China as a result of that country’s ongoing dispute with Japan over the ownership of a chain of small, uninhabited islands in the East China Sea.


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.