Honda’s net income plunged 38 percent in the first quarter of 2011

Article by Christian Andrei, on April 27, 2011

For the first quarter ended March 31, 2011, Honda Motor Co. recorded a net income of 44.5 billion yen ($545 million), a 38 percent drop. Honda missed the estimates of analysts of an average of 93.8 billion yen, compiled by Bloomberg. The company identified the March 11 earthquake that disrupted output and vehicle sales in Japan as contributing factor to the decline in net income.

The company’s sales dropped 2.9 percent, reaching only 2.2 trillion yen. The players in the automotive market are aiming to bring their production to pre-quake levels after the disaster disrupted components supply and electricity in Japan.

Earlier this week, Honda has disclosed that it expects its output to resume normal levels in a global scope by the end of this year. However, president Yuuki Sakurai at Fukoku Capital Management Inc. in Tokyo stated that even if production resumes, the sales may not. Specifically, Sakurai stated that the May and June sales of various companies may be close to zero since there would be nothing much to sell.

Honda did not give a forecast on its full-year earnings citing the impact of last month’s disaster on production.

On the global scale, the company recorded a 1.6 percent drop in sales to 860,000 in the first quarter ended March 31, generally due to the 22 percent decrease in Japan.

On the other hand, sales in its Asian markets, excluding Japan, increased to 238,000 units, a 0.4 percent increase, while deliveries in its North American market increased 7.9 percent, reaching 356,000 units.

In Japan, the company’s March output dropped 63 percent to 34,754 units. The company will continue producing cars and components in Japan at 50 percent of the regular capacity until the end of June.

Topics: honda

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

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
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
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