Honda crashes

[SurfaceUnits]

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

[chop456]

Net income of $2B? A weak effort at best.

If they want to play with the big boys, they'll need to react slower and pay everyone way too much to design and build cars nobody wants.

Rookies. :rolleyes:

[Andrew Longman]

Net income of $2B? A weak effort at best.

If they want to play with the big boys, they'll need to react slower and pay everyone way too much to design and build cars nobody wants.

Rookies. :rolleyes:

Or play currency hedges better. While sales are down their hit seems to be mostly coming from a whack in exchange rates. :gomer:

[Methanolandbrats]

They withdrew from F1 because they were getting their asses kicked. They only play if they win. Last time they quit it was to "build environmentally friendly cars", this time it's "the economy". **** them, real racers keep coming to the grid until they sort it out.

[FTG]

real racers keep coming to the grid until they sort it out.

********. The rich run up front. Real racers run what they can afford.

[trish]

They're also threatening to transfer production overseas (outside of Japan) and start importing more cars if Japan doesn't do something about their currency. Interesting times.

Story here (http://uk.reuters.com/article/governmentFilingsNews/idUKTKG00315820081219)


Beyond that we could switch to importing more cars into Japan, bring research and development facilities overseas, and in an extreme scenario move our headquarters offshore. It would cause nothing short of a hollowing out of Japanese industry.

[Methanolandbrats]

********. The rich run up front. Real racers run what they can afford. I'm not talking about autocross.

[STD]

********. The rich run up front.

That's what Honda thought.

[FTG]

I'm not talking about autocross.

Sorry. I forgot about the incredible success of Minardi.:shakehead