Tokyo, Apr 27: Japanese carmaker Honda today said its net profit rose 8.8 per cent to a record 464.3 billion yen (USD 4.1 billion) in the year to March powered by robust sales overseas. But Japan's third largest carmaker in terms of output forecast that its net profit would fall 16.0 per cent to 390.0 billion yen in current fiscal year to March 2005 due to the strengthening yen.

The automaker said, "Negative currency translation effects" would slash 139.0 billion yen from profits for the current fiscal year, despite forecast record high unit sales of motorcycles, automobiles and power products. For the year just ended, Honda's pre-tax profit rose 5.3 per cent to a record high 641.9 billion yen, on a 2.4 per cent rise in revenue to a record 8.16 trillion yen.

Honda said in a statement its record-breaking profits and sales were "mainly due to robust overseas sales," adding that "domestic sales saw a decline."

Motorcycle sales rose 13.9 per cent to 9.206 million units mainly due to growth in Asia and South America, while automobile sales rose 3.3 per cent to 2.98 million units, thanks to big gains in Asia, North America and Europe. The drop in domestic auto sales by 133,000 units was offset by gains in North America of 36,000 units, in Europe of 24,000 units and in Asia of 136,000 units.

A revenue drop in North America of 0.8 per cent in the year just ended to 4.67 trillion yen was blamed on the strengthening yen.

Bureau Report