Arab Today, arab today honda reports surging profit but slashes forecast
Last Updated : GMT 12:22:09
Arab Today, arab today
Arab Today, arab today

Honda reports surging profit but slashes forecast

Arab Today, arab today

Arab Today, arab today Honda reports surging profit but slashes forecast

Tokyo - AFP

Honda Motor shares tumbled on Monday after the Japanese automaker warned that its full-year results would be much weaker than forecast, even as its first-half profit more than doubled to $2.7 billion. Investors pushed the stock down 4.65 percent to 2,399 yen by the close in Tokyo as they reacted to news that the maker of the Accord and Civic would report a profit that was 20 percent lower than previously expected. Blaming a strong yen and weakening sales, Japan\'s third-biggest automaker said it now expects to earn 375 billion yen ($4.7 billion) in its fiscal year to March 2013, down from an earlier 470 billion yen forecast. Sales were tipped to fall to 9.8 trillion yen, from 10.3 trillion yen. \"We expect earnings to come below the estimates announced on April 27, 2012, due to a decrease in sales volume amid the changing business environment and the impact of currency exchange rates,\" Honda said in a statement. Honda\'s profit and sales downgrade, which dragged down the shares of rivals Nissan and Toyota, stood in marked contrast to its latest half-year results. These saw net profit soar to 213.96 billion yen, up from 92.23 billion yen in the same period a year earlier. Sales in the period were 4.71 trillion yen, up from 3.60 trillion yen. Honda said the rosy results were largely due to a rebound from last year\'s quake-tsunami disaster. The automaker did not elaborate on the impact of a simmering territorial dispute between Tokyo and Beijing, which has put the brakes on Japanese carmakers\' sales in China, the world\'s biggest vehicle market. The two Asian giants remain locked in a festering row over islands in the East China Sea controlled by Japan but claimed by China, sparking double-digit sales declines in September for Japan\'s biggest automakers. Japanese factories and businesses across China closed or scaled back operations in September over fears they or their workers could be targeted by mobs protesting against Tokyo\'s nationalisation of the islands. \"Honda\'s sales apparently felt the impact from a weaker China market, as well as the stronger yen, and (this) raises the possibility that it will revise down its full-year forecast yet again,\" Hideyuki Ishiguro, strategist at Okasan Securities, told Dow Jones Newswires. \"Of course Honda\'s problems are not unique -- the magnitude of the China component in its earnings may be most felt in Nissan Motor\'s earnings, since it has the heaviest proportional exposure to China.\" Shares in Nissan, which has yet to report its latest quarterly results, were off 2.18 percent to 670 yen while Toyota shares fell 1.62 percent to 3,030 yen by the close. Japanese automakers saw extensive damage to their supply chains as a result of the twin disasters in Japan last year as well as record flooding in Thailand. A high yen also ate into exporters\' sales and profits. The country\'s automakers have come under pressure from the value of the currency, which last year hit record highs against the dollar and remains strong. This makes exports relatively more expensive overseas and cuts the value of repatriated earnings. While the number of vehicles that Honda sold rose strongly in the first half -- including a 73 percent jump in the key North American market -- the company said revenue in Europe, the Middle East and South America all weakened \"mainly due to unfavourable foreign currency translation effects\". The number of motorcycles that Honda sold in the first half rose by about 7.0 percent on-year, it added.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today honda reports surging profit but slashes forecast Arab Today, arab today honda reports surging profit but slashes forecast

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 06:57 2017 Sunday ,26 February

Huawei wins MRM Business Innovation Award

GMT 08:49 2017 Saturday ,25 February

Shell plans $300 mn investment in Argentina shale

GMT 05:40 2017 Saturday ,25 February

British Airways owner reports profit

GMT 15:19 2017 Thursday ,23 February

Companies' commitment to Bahrainisation quotas praised

GMT 14:48 2017 Thursday ,23 February

Etihad Airways Engineering signs deal with Kenya Airways

GMT 12:25 2017 Thursday ,23 February

Bharti Airtel buys Telenor's India operations
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday