Honda raised its annual profit outlook above market expectations

Article by Christian Andrei, on February 1, 2011

Honda Motor Co. reported a 29 percent fall in October-December operating profit to JPY125.65 billion ($1.53 billion), from JPY177 billion a year earlier and beating the average JPY110 billion estimated by seven analysts surveyed by Reuters.

The automaker raised its annual profit outlook above market expectations as a recovery in the key U.S. market helped counter the strong yen and sliding Japanese sales, which weighed on third-quarter earnings.

Koichi Ogawa, chief portfolio manager at Daiwa SB Investments said that Honda’s strong earnings were backed by strong growth in North America and Asia and “robust” motorcycle demand in emerging markets also helped Honda's earnings.

Honda, which fell behind Nissan Motor Co. to become Japan's third-biggest automaker in 2010, raised its operating profit forecast for the year to March 31 to JPY620 billion from JPY500 billion. A survey of 20 analysts by Thomson Reuters I/B/E/S forecasts profit of JPY594 billion.

The carmaker lifted its net profit forecast to JPY530 billion from JPY500 billion and nine-month profits easily exceeded Honda's previous full-year profit forecast.

Japan's major automakers are forecasted to report a sharp decline in October-December profits as the end of subsidies for eco-friendly cars hits domestic sales and prices for raw materials like steel rise.

However, Japanese car makers have also taken steps to improve manufacturing efficiency and reduce fixed costs to keep profit margins relatively healthy, boding well for future earnings as the U.S. market recovers. [via autonews - sub. required]

Topics: honda, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 2016
In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries