Honda Profits Up, Forecasts Further Weakening Yen
The Japanese auto maker sold 3.41 million vehicles on a consolidated basis in fiscal-year 2013, 926,000 more than in prior-year but 42,000 less than forecast in January.
April 26, 2013
Continuing its recovery from the Japanese earthquake and tsunami of 2011, Honda books net income of ¥367.1 billion ($3.7 billion) in fiscal-year 2013 ended March 31, up from prior-year’s ¥211.4 billion ($2.2 billion) but just missing the auto maker’s target set in January of ¥370.0 billion ($3.8 billion).
Honda credits increased vehicle sales and a weakening Japanese yen for higher revenues of ¥9.9 trillion ($100.6 billion) compared with ¥7,948.0 ($81.0 billion) in fiscal-year 2012.
The auto maker’s financial results are based on a ¥84:$1 exchange ratio, down ¥5 ($.05) from year-ago and ¥3 ($.03) from the January estimate.
Honda’s operating income rose to ¥544.8 billion ($5.5 billion) from ¥231.3 billion ($2.4 billion) in fiscal 2012.
The Japanese auto maker sold 3.41 million vehicles on a consolidated basis in fiscal 2013, 926,000 units more than in prior-year but 42,000 less than forecast in January.
Honda says China is improving but still is depressed for Japanese brands. Some consumers still are refraining from purchasing vehicles from Japan-based auto makers since a decades-long land dispute erupted last fall.
Honda sees the further weakening yen improving its financials next year. The auto maker forecasts a yen-dollar exchange rate of ¥95:$1, leading to net income of ¥580.0 billion ($5.9 billion) for the current fiscal year.
Honda expects to book global vehicle sales of 3.67 million units in fiscal 2014.
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