Honda Motor posts Q4 loss on weak sales
Wednesday, 29 April 2009
TOKYO, Apr 28 (AFP): Honda Motor Co. said Tuesday it lost 1.9-billion-dollars in the fourth quarter due to weak sales, but said it was hopeful the giant US car market might be over the worst of the slump.
However, Japan's second-largest automaker posted a profit for the year, helped by brisk demand for motorcycles, particularly in emerging economies.
For the three months to March, Honda logged a net loss of 186.1 billion yen (1.9 billion dollars), against a year-earlier profit of 25.4 billion yen.
It reported an operating loss of 283.0 billion yen as revenue tumbled 41.6 per cent from a year earlier.
"The real economy continued to deteriorate in the US and Europe, and the recession became more serious," said Honda chief financial officer Yoichi Hojo.
Asia's economy, including Japan, also worsened, he added.
Japanese car makers have taken a heavy blow from the global economic downturn, which has caused sales to plunge.
A stronger yen has been an extra headache, reducing the value of companies' overseas earnings and making it harder for them to stay competitive in foreign markets. But Honda-which announced in December its shock withdrawal from Formula One due to the credit crunch-said it saw some glimmers of optimism.
"In North America, I think we have hit the bottom, but it's still uncertain how we can rebound," said Honda executive vice president Koichi Kondo.
He said a deadly outbreak of swine flu in Mexico was one risk factor, although Honda has no plan for now to close its plant there.
However, Japan's second-largest automaker posted a profit for the year, helped by brisk demand for motorcycles, particularly in emerging economies.
For the three months to March, Honda logged a net loss of 186.1 billion yen (1.9 billion dollars), against a year-earlier profit of 25.4 billion yen.
It reported an operating loss of 283.0 billion yen as revenue tumbled 41.6 per cent from a year earlier.
"The real economy continued to deteriorate in the US and Europe, and the recession became more serious," said Honda chief financial officer Yoichi Hojo.
Asia's economy, including Japan, also worsened, he added.
Japanese car makers have taken a heavy blow from the global economic downturn, which has caused sales to plunge.
A stronger yen has been an extra headache, reducing the value of companies' overseas earnings and making it harder for them to stay competitive in foreign markets. But Honda-which announced in December its shock withdrawal from Formula One due to the credit crunch-said it saw some glimmers of optimism.
"In North America, I think we have hit the bottom, but it's still uncertain how we can rebound," said Honda executive vice president Koichi Kondo.
He said a deadly outbreak of swine flu in Mexico was one risk factor, although Honda has no plan for now to close its plant there.