News Column

Honda Looks for $5.9 Billion Net Profit in FY 2013

April 26, 2013
2013 Honda Hybrid. (Image: Honda)
2013 Honda Hybrid. (Image: Honda)

Honda Motor Co expected a net profit of 580 billion yen (5.9 billion dollars) for the financial year to March, up 58 per cent, due to the yen's depreciation and an expected increase in four-wheel vehicle sales, Japan's third-largest carmaker said Friday.

Honda also predicted an operating profit of 780 billion yen and sales of 12.1 trillion yen.

Net profit in the January-to-March quarter climbed 5.7 per cent year-on-year to 75.7 billion yen, on a weaker yen and robust sales in Asia, and also thanks to the recovery from flooding in Thailand in late 2011 that shut down Honda factories and suppliers.

Operating profit for the quarter jumped 21.4 per cent from a year earlier to 135.9 billion yen, while sales climbed 14 per cent to 2.74 trillion yen.

A weaker yen makes Japanese goods more competitive overseas and improves repatriated revenues.

For the financial year, which ended March 31, Honda's net profit jumped 73.6 per cent to 367.1 billion yen from 211.4 billion yen a year before, the carmaker said.

Honda also said an operating profit more than doubled to 544.8 billion yen for the year while sales rose 24.3 per cent to 9.88 trillion yen.

Honda said Wednesday its domestic vehicle production edged up 0.6 per cent in the previous financial year to 876,039 units while its overseas output jumped 40.5 per cent to about 3.18 million for the first rise in two years.

The carmaker's shipments from Japan for the previous financial year fell 35.5 per cent to 163,324 vehicles for the second consecutive year of decline, Honda said eaelier.

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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH

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