Tuesday, June 14, 2011

Honda sees 65% fall in 2011/12 operating profit

TOKYO: Honda Motor Co forecast a 65 percent fall in annual operating profit on Tuesday, hampered by a lingering disruption to vehicle production from the March 11 earthquake.

Japan's third-biggest automaker expects an operating profit of 200 billion yen ($2.49 billion) in the business year to March 31, 2012, lagging by far a consensus forecast of 407.2 billion yen, according to a post-quake survey of 20 analysts by Thomson Reuters I/B/E/S.

It expects net profit, which includes earnings from China, to decline 63 percent to 195 billion yen, assuming an average dollar rate of 80 yen and a euro rate of 110 yen for the year.

Honda, like other Japanese automakers, had delayed providing financial forecasts given a lack of clarity over when parts supply would recover after the magnitude 9.0 quake in Japan's northeast. In late April, it announced a 52 percent drop in January-March operating profit as production came to a virtual halt in the second half of March.

Shares in Honda have fallen 12 percent in the last three months, underperforming a 9 percent decline in Tokyo's transport sector subindex. ' Reuters

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