Honda Motor Co. will be announcing its first half results on Oct. 27 but the Nikkei business daily already has its own predictions of what is to come. Nikkei business daily said that the first half (April to September) of Honda's financial year is likely to post an operating profit of 60 billion yen ($660 million), beating its forecast for a loss on cost-cutting and solid sales of fuel-efficient cars.
From this first-half year figure, it is implied that operating profit for the July-September quarter amounted to 34.8 billion yen, which is below the average estimate for a 41.7 billion yen profit in a poll of 5 analysts by Thomson Reuters.
Honda responded with a statement that the Nikkei's figures were not based on the company's announcements.
According to Nikkei, first-half sales at Japan 's second-largest automaker likely dropped 30% to 4.1 trillion yen, beating the company's forecast for 3.92 trillion yen. Due partly to government's offer of tax incentives to those who buy fuel-efficient cars, Japan sales rose 1% in volume terms.
Car sales were solid in emerging markets while Honda's motorcycle division also performed well, fueled by growing demand in India.
Nikkei said that it's likely Honda's results were boosted by a weaker-than-expected yen in the July-September quarter. Nikkei states that currently, Honda is expected to record an operating profit of more than 100 billion yen for the full year to March 2010, beating its forecast of 70 billion yen.