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Posts Tagged ‘honda profits’

New Honda CEO Lays Out Turnaround Plan

Takahiro Hachigo wants to tap “power of Honda people.”

by on Jul.06, 2015

Former CEO Takanobu Ito and Honda's new Chief Exec Takahiro Hachigo.

Hammered by the recall of more than 20 million vehicles due to faulty airbags, as well as a nearly 9% decline in profits, Takahiro Hachigo has a tough job ahead as the new CEO of Honda Motor Co.

The lifelong employee of Japan’s third-largest automaker laid out his vision of a turnaround during his first official news conference since being promoted to CEO last month. While Hachigo was short on specifics, he offered a broad outline that will bring more products and could see Honda enter new alliances and joint ventures with erstwhile rivals.

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“I plan to create a new Honda,” he told reporters at Honda’s Tokyo headquarters, adding that his goal is to tap into “the power of Honda people.”


Profits Slide – But Toyota Claims Recovery on Track

Make boosts full-year sales, earnings forecast.

by on Feb.07, 2012

Toyota hopes to boost demand for products like the Corolla during the fourth quarter.

Toyota profits slid another 13.5% for the latest quarter reflecting the maker’s ongoing production problems and the impact of lopsided exchange rates – but the Japanese giant also indicated that it has begun a long-awaited recovery that should see profits begun turning upward during the final three months of the Japanese fiscal year.

Toyota profits slipped to 80.9 billion, or $1.05 billion, for the October – December quarter, down from $93.6 billion yen the year before.  Sales for the quarter were up 4.1%, to 4.865 trillion yen, or $63.4 billion, hinting at the maker’s slow return to normal production levels after the hammering it took as a result of the March 11 Japanese earthquake and tsunami and subsequent flooding in Thailand.

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Toyota Managing Director Takashi Ijichi indicated, during a conference call, that sales continue returning back to normal during the current quarter.  Meanwhile, “company-wide profit improving efforts” will help trim about 60 billion yen in costs during the fourth quarter.  As a result, Toyota raised its profit forecast for the full year to 200 billion yen, or $2.6 billion, up from 180 billion yen, or $2.3 billion, in an earlier forecast.

“We feel confident the foundation of our business is now stronger,” he said.


Honda Profits Tank, Maker Hints at Further Troubles Ahead

Japanese maker withdraws sales guidance for rest of year.

by on Oct.31, 2011

Shortages of the 2012 Honda Civic were a significant drag on the maker's earnings.

Honda saw profits for the second quarter of its fiscal year plunge by 68%, well beyond what analysts had been anticipating – and the maker is hinting the situation may not improve as quickly as it originally anticipated.

Honda had been hoping to begin a much-anticipated turnaround as it finally got its plants back up to speed in the wake of the March 11 Japanese earthquake and tsunami. But the maker is warning it now faces another serious setback as the disastrous floods in Thailand knock a critical plant out of action.

“To put it bluntly, we’re in a really tough spot,” said Honda Chief Financial Officer Fumihiko Ike,” during a briefing on the second quarter results.  “We’re in a much more difficult position because our car factory is inundated.”

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While the maker’s U.S. dealers do no market any vehicles sold in Thailand, that doesn’t mean Honda of America is out of the woods.  The loss of the Thai plant could have a significant global impact, as it produces parts and components used at Honda plants around the world.  Making matters worse, about 10% of Honda’s Tier-One suppliers in Thailand have also been flooded and so have others down the supply chain.


Honda Earnings Tumble – But Mitsubishi Rides Out Quake With Rare Profit

Both makers anticipate earnings upturn over coming months.

by on Aug.01, 2011

Honda's earnings could rebound if new products like the next-gen CR-V catch on in the months ahead.

With some of its key models still in short supply in the wake of the March 11 earthquake and tsunami that devastated Northeast Japan, few analysts were surprised when Honda Motor Co. reported a 90% plunge in profits for the latest quarter.

The real shock came from long-troubled Mitsubishi Motors, which rode out the impact of parts and product shortages to post a rare profit for the first quarter of the Japanese fiscal year, which began on April 1, just weeks after the natural disaster struck.

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Both companies – like most of the Japanese industry — are betting that as shortages are made up, earnings will steadily improve in the months ahead.  Honda, in fact, raised its full-year profit forecast, underscoring its confidence in a strong recovery.  But the maker has several critical challenges.  It has to get the new 2012 Civic into full production mode.  Its spring launch unfortunately coincided with the Japanese disaster and U.S. officials warn the new small car may not reach normal production levels until autumn.  Meanwhile, Honda has to hope there will be no more setbacks as it prepares to launch the next generation of its compact CR-V crossover.


Nissan Forecasts Record Sales but Declining Profits

Maker likely least hurt by March disaster among major Japanese brands.

by on Jun.23, 2011

Nissan CEO Carlos Ghosn, shown with a Nissan Leaf, forecasts an unexpectedly good year..

Like its major Japanese rivals, Toyota and Honda, the March 11 earthquake and tsunami will take a substantial toll on Nissan’s earnings for the current fiscal year, the maker forecast today – but Nissan officials also predicted that their company will experience another year of record sales despite a substantial cut in production in the weeks following that disaster.

Nissan’s strong reliance on overseas assembly plants – and suppliers outside Japan – helped minimize the impact of the disaster, the company has suggested, allowing it to resume production faster than those competitors, especially Toyota, which continues to base a large portion of its production operations in the home Japanese market.

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Nissan’s net profit is now projected to slip 15.4%, to ¥270 billion, or $3.4 billion, down from ¥319 billion in the previous fiscal year, which ended March 31.  On the other hand, revenues are expected to climb 7.1%, to ¥9.4 trillion.  The maker, meanwhile, said it would double its dividend to ¥20 per share this year.


Honda Forecasts 63% Drop in Profits

Earnings amidst the devastation.

by on Jun.14, 2011

Shortages of the Honda Civic will contribute to the maker's plunge in profits for the fiscal year.

Just days after its rival, Toyota, projected it would see a huge plunge in profits as the result of the March 11 Japanese earthquake, Honda Motor Co. says it also will take a devastating hit to its bottom line, with earnings for the current fiscal year likely to plunge by 63.5%.

Honda – like Toyota – delayed its forecast for the fiscal year running through March 2012 while it assessed the impact of the earthquake and subsequent tsunami, which shut down most of its home market production for a month.

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Honda now expects to have most of its factories back up to speed sooner than initially anticipated, but several key operations, including the plants producing the critical new 2012 Civic, will be operating below capacity until autumn.

Honda anticipates the current fiscal year will see profits of 195 billion yen ($2.4 billion), down by nearly two-thirds from the 534 billion yen recorded during the fiscal year that ended last March 31.


Nissan’s Profit Jump Counters Honda, Toyota

Maker predicts further increases ahead, despite surging yen.

by on Feb.10, 2011

"We will continue to deliver good results," promises Nissan CEO Carlos Ghosn.

Nissan Motor Co. broke step with its two largest Japanese rivals, both of which recently reported sharp third-quarter earnings declines.  Nissan, however, saw its earnings surge 78%, while boosting its forecast for the full fiscal year.

Nissan says it earned 80.07 billion yen for the October-December quarter, or $970 million, up from 45 billion yen during the third quarter of its previous fiscal year.  That was well ahead of industry analysts’ earlier forecasts.

Sales and revenues, meanwhile, jumped 5%, to 2.1 trillion yen.  Unit sales surged 14%, to 1.01 million vehicles.

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The earnings report was the latest in a string of good developments for the maker, based in Yokohama, Japan.  It recently announced its sales had surpassed those of rival Honda, making it the second-largest of the Japanese automakers.  It’s most recent quarterly profit increase counters the double-digit declines reported for the period by both Honda and the industry giant, Toyota.


Honda Earnings Down, Longer-Term Forecast Up – For Now

Rising yen causing big troubles.

by on Oct.29, 2010

U.S. sales up but margins down for Honda as the dollar continues to slide against the yen.

Honda is raising its profit forecast for the current fiscal year – even as the rising yen takes a toll on its current performance.

The maker forecasts it will earn 500 billion yen – or $6.2 billion – for the fiscal year ending March 31, 2011, a sharp increase from an earlier forecast of 455 billion yen.  But the upside projection was tempered by news that second-quarter earnings fell 15%, largely as the result of a rising yen that has made it increasingly difficult to market products abroad, especially in key markets like the U.S., without slashing margins.

The project full-year numbers actually disguise the degree of trouble facing the maker, however.  Honda has now earned 408 billion yen for the first half of the fiscal year.  Net income for the final six months, it forecast, should slip to just 92 billion, despite a strong operating performance.

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The upwards pressure on the yen versus and dollar and the yen versus the euro has created what Honda executives describe as an acute market crisis, despite the rise in the company’s operating income, which increased by 149.4% in the second fiscal second quarter, ending Sept. 30.

Honda executive vice president Koichi Kondo said Honda has already been working to procure lower-priced parts from overseas suppliers. “It is natural that the strong yen is accelerating this drive,” Kondo said at Honda’s earnings press conference.