Honda Q2 profits more than halve to 54 billion yen

Last Updated: Tuesday, October 27, 2009 - 17:37

Tokyo/New Delhi: Hit by fall in vehicle sales and currency fluctuation, Japanese car maker Honda Motor reported 56 per cent decline in its profit to 54 billion yen for the September quarter.

The entity had profits worth 123.3 billion yen in the
same period a year ago, it said in a statement on Tuesday.

The decline in the bottom line was mainly on account of
"decreased sales in automobile business and the unfavourable
impact of currency translation".

However, unlike many other auto makers worldwide, Honda
has managed to tackle the financial crisis in a better manner
especially with good sales of motorcycles. Rattled by the
turmoil, many have skid deep into the red while American
entities like General Motors and Chrysler were forced into
bankruptcy restructuring.

Honda`s second quarter net sales and other operating
revenues tumbled 27 per cent to 2.06 trillion yen.

Indicating that the worst could well be over for the auto
market, Honda has presented an upbeat outlook for the fiscal
year ending March 31, 2010. The company has more than doubled
its full-year profits forecast to 155 billion yen from 55
billion yen projected in July.

Further, the car maker nearly tripled its operating
income projection to 190 billion yen for fiscal year 2009-10
as against the earlier estimate of 70 billion yen.

Bureau Report

First Published: Tuesday, October 27, 2009 - 17:37

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