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

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 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