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12-17-08, 06:14 AM
Honda Slashes Forecast as Sales Collapse, Yen Surges (Update2)
Dec. 17 (Bloomberg) -- Honda Motor Co., Japan’s second- largest automaker, slashed its full-year profit forecast by 62 percent as the yen surged to a 13-year high against the dollar and car sales in North America and Europe plummeted.
The company expects net income of 185 billion yen ($2.08 billion) for the year ending March 31 compared with an earlier forecast of 485 billion yen, it said in Tokyo today. Operating profit may total 180 billion yen, compared with a previous estimate of 550 billion yen.
Honda may report a half-year operating loss for the first time in at least in 11 years, as the global recession cripples sales in the U.S., Japan and Europe. The yen’s 26 percent gain against the dollar and 30 percent rise against the euro this year has hammered Honda’s profit, forcing it to cut jobs, lower management pay and withdraw from Formula One motor racing.
http://www.bloomberg.com/apps/news?pid=20601101&sid=asDCdNdT2a2E&refer=japan
Dec. 17 (Bloomberg) -- Honda Motor Co., Japan’s second- largest automaker, slashed its full-year profit forecast by 62 percent as the yen surged to a 13-year high against the dollar and car sales in North America and Europe plummeted.
The company expects net income of 185 billion yen ($2.08 billion) for the year ending March 31 compared with an earlier forecast of 485 billion yen, it said in Tokyo today. Operating profit may total 180 billion yen, compared with a previous estimate of 550 billion yen.
Honda may report a half-year operating loss for the first time in at least in 11 years, as the global recession cripples sales in the U.S., Japan and Europe. The yen’s 26 percent gain against the dollar and 30 percent rise against the euro this year has hammered Honda’s profit, forcing it to cut jobs, lower management pay and withdraw from Formula One motor racing.
http://www.bloomberg.com/apps/news?pid=20601101&sid=asDCdNdT2a2E&refer=japan