TOKYO (dpa-AFX) - Japanese automaker Honda Motor Co. (HMC) reported an 88.3 percent decline in profit for the first quarter of fiscal 2012, with sharp declines in automobile sales and in all regions due to the impact of the March 11 Great East Japan Earthquake. However, the company lifted its fiscal 2012 earnings and sales forecast.
Net income attributable to the company was 31.7 billion yen (about $408.9 million), sharply lower than 272.4 billion yen last year. Earnings per share were 17.64 yen, down from 150.27 yen a year ago.
The company noted that it still could make a profit despite the significant quake impact, 'due to the expansion of motorcycle business profit as well as the strong performance of financial services business primarily for automobile purchases.'
Net sales & other operating revenue dropped 27.4 percent to 1.71 trillion yen from 2.36 trillion yen in the previous year.
Segment-wise, net sales from Motorcycle business grew 3.2 percent, even though volumes fell 4.7 percent to 2.75 million units reflecting lower sales in Asia and North America.
Meanwhile, net sales in automobile business plunged 35 percent to 1.18 trillion yen with a sharp drop in volumes, due to the quake impact and negative currency translation effect. For the quarter, increased sales in North America and Asia was offset by poor sales in Japan and Europe.
Power Products net sales fell 5.9 percent, despite a 5 percent rise in volume with higher sales in all regions. Financial services net sales also declined 9 percent in the quarter.
The company recorded sharp decline in net sales for all regions. In Japan, the economy has remained severe since the quake, although signs of improvement such as steady capital spending and consumer spending could be seen, the company noted. Concerns remain due to limited electricity supply, nuclear power plant disasters and oil price hikes.
Looking ahead, for fiscal 2012, Honda now expects net income attributable to the company to be 230 billion yen or 127.61 yen per share, higher than previous forecast of 195 billion yen. Net sales & other operating revenue would be 8.70 trillion yen, higher than 8.3 trillion yen expected earlier.
However, on year-over-year basis, attributable net income is expected to decline 56.9 percent from last year's 534 billion yen, and net sales and other operating revenue is projected to decline 2.7 percent from prior year's 8.94 trillion yen.
In mid-June, the company said it expects 63.5 percent decline in full-year profit, citing lower production due to the restricted supply of parts after the quake.
HMC closed Friday's regular trading session at $39.78, up $0.28 or 0.71 percent.
Copyright RTT News/dpa-AFX
© 2011 AFX News
Monday, August 01, 2011
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