Honda expects lower surge in net profit for 2014 fiscal year

Article by Christian A., on April 28, 2014

Honda Motor Co. expects to post a 3.6-percent jump in net profit for the year ending March 31, 2015, to JPY595 billion ($5.8 billion). That compares with the JPY700 billion mean estimate of 20 analysts polled by Thomson Reuters I/B/E/S. Honda remarked that its high level of capital spending will dive slightly this fiscal year to JPY650 billion as it pushes through with its expansion plan.

The carmaker disclosed that commencement of operations at a site in Thailand could face a delay as the country suffers from political uncertainty.

In the fiscal year ended March 2014, Honda posted over a 50-percent surge in net profit, thanks to strong sales of its redesigned Fit compact that countered the effect of a missed target in the United States.

Honda, like other Japanese carmakers, posted a significant surge in net income in the previous fiscal year as the yen dropped nearly 10 percent against the US dollar, boosting the value of overseas profit when converted back into yen.

The lower income forecast for the current fiscal year comes as the yen stabilizes, which means the value of overseas income won’t increase as much as in previous financial year.

Honda expects foreign exchange moves to drop profit by JPY67 billion in the current fiscal year. For the fourth quarter ended March 2014, Honda more than doubled its net profit to JPY170.5 billion.

Honda Executive Vice President Tetsuo Iwamura remarked that the company has entered a stage in which they reap the benefits of investments as they grow.

He, however, said that it would be a challenge to achieve its target of building 6 million vehicles annually by 2016-2017. The carmaker currently builds 4.3 million vehicles, and plans to hike global sales by 12 percent this fiscal year to 4.83 million vehicles. [source: Reuters]

Topics: honda, profit

If you liked the article, share on:

Comments

Recommended

Like it or not, Chevrolet may soon be offering a cheaper Camaro in hopes of competing with Dodge Challenger and Ford Mustang GT. Apart from the less expensive trim, the...
by - August 17, 2017
Recently, Porsche revealed a new Macan Turbo wearing a Performance Package and a unique Porsche Motorsport themed paint. At first look, it will remind you of the 919 Hybrid and...
by - August 17, 2017
The BMW M1 will be one of the most exclusive cars that will be showcased at the upcoming 2017 Pebble Beach Concours d'Elegance, alongside many other extravagant models. Firstly, there...
by - August 17, 2017
Aston Martin Vanquish Zagato makes its debut with a total of four variations including the Speedster and the Shooting Brake trims. As part of the limited edition model, the company...
by - August 17, 2017
Mitsubishi finally introduces the new Xpander MPV at the 2017 Indonesia International Auto Show in Jakarta Indonesia. Replacing the previous Expander, the new multipurpose vehicle will be mostly sold at...
by - August 16, 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