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

Article by Christian A., 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

Recommended

It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 2017
Jaguar fans, as well as auto enthusiasts in general, has a reason to celebrate this week as the brand gave everyone a peek of the new 2018 XF Sportbrake. This...
by - April 28, 2017
BMW has revealed that its i brand has partnered with TED in order to launch a worldwide search of unique ideas under the title “NextVisionaries.” This brand has long been...
by - April 28, 2017
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