Honda reports its first loss in 15 years
By Andrew C., 30 Aug, 2010. 0 Comments
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Obviously, cutting output and shelving programs is not sufficient in assisting Honda endure the ongoing economic crisis. For the first quarter of this year, Honda reports a $2.9 billion loss; it's first in 15 years. Compared with $1.75 billion profit from first quarter of last year, this is quite a large fall indeed. Although the unfavorable exchange rates has hit the company's operating income, the losses was brought about largely due to a worldwide falling of sales, a high percentage of which happened in North America.
Worldwide Honda sales reached 680,000 units in the first three months of this year representing a 35.3 percent decreases compared to last year
. In the American scene though sales were down almost 50 percent with only 219,000 cars sold compared to 459,000 cars in 2008. The future doesn't hold any promise for the ailing company as top execs foresee a70.8 slump in the company's income by the end of this year. If these dire condition continue to get worse, Honda could declare its first-full year loss since 1948, the year it was founded.
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