Honda fourth quarter profit falls sharply

25-04-2008

Honda fourth quarter profit falls sharply
Japanese carmaker Honda has blamed a fourth quarter 85.6 per cent dive in profit on higher taxes and increased operating costs.

Despite selling more cars over the three-month period to March 31st 2008 compared to last year – over a million during the quarter, a 9.8 per cent rise from last year – the automobile maker posted a consolidated net income of JPY25.4 billion (£122 million) from JPY176.2 billion (£849 million) in 2007.

Consolidated income before income taxes, minority interest and equity in income of affiliates for the quarter totalled JPY146.8 billion (£707 million), a decrease of 38.6 per cent from the same period in 2007.

Sales incentives in North America, increased raw material costs, depreciation expenses and the appreciation of the Japanese yen all offset the increased car sales and efforts to cut costs.

Overseas unit sales increased 12 per cent to 860,000 units from last year, but the strong yen and the weak dollar led to a three per cent decline in revenue from external customers to JPY2,356 billion (£11.35 billion).

Motorcycle sales were down ten per cent over the quarter.

For the full year, Honda posted a 13 per cent increase in pre-tax profit to JPY895.84 billion (£4.3 billion), compared to JPY792.87 billion (£3.82 billion) in 2007.

For the year to 2009, Honda predicts sales will be up slightly by 1.1 per cent, but net income will be down 18.3 per cent to JPY490 billion (£2.36 billion).

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure