Honda first half net profit falls 77 pct

October 31, 2011 | 14:43

(0) user say

Japanese automaker Honda on Monday said its net profit for the fiscal first half plunged 77.4 per cent on-year, as it grapples with the impact of the March earthquake and the effects of a strong yen.

In the second quarter ended September 30, Honda said net profit fell 55.5 per cent to 60.4 billion yen amid sluggish sales in the United States and in Japan due to quake-related supply chain problems.

The automaker also said it would withhold giving an earnings forecast for the year ending March 2012 as it continued to assess the impact of Thailand's worst flooding in decades, forcing it to halt production there.

The maker of the Civic and Accord said net income in the first half ended September 30 totalled 92.2 billion yen ($1.2 million), a decrease of 77.4 per cent from the same time a year ago.

Operating profit in the period plunged 81.1 per cent to 75 billion yen, it said, due to lower sales and production, the impact of raw material price increases and the effects of a stronger yen.

Sales fell 22 per cent to 3.6 trillion yen on lower automobile sales "led by decreased production attributable to the impact of the earthquake and unfavourable foreign currency translation effects," the automaker said.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional