Honda Q1 Barely Profitable as Earthquake Devastates Results

In Tokyo this morning Honda Motor Co., Ltd. (NYSE: HMC) said it posted a ¥31.8 billion profit ($414.2 million) for the fiscal first quarter ending June 30, 2011. The results were hurt by the Japanese earthquake and tsunami, which interrupted vehicle production, but helped by revenue from Honda’s motorcycle business. In the year earlier quarter, Honda earned ¥272.49 billion in net profit. For comparison consider Nissan earned ¥150 billion for Q1.

Net income per common share for the quarter amounted to ¥17.64 ($0.22), a decrease of ¥132.63 from ¥150.27 for the corresponding period last year.

Honda’s automobile unit sales totaled 547,000 units, a decrease of 39.2% from the same period last year due to production disruptions in all regions from the Japan Earthquake and Tsunami.

Revenue from sales decreased 35.1%, to ¥1,176.9 billion ($14,578 million), from the same period last year due mainly to decreased sales and unfavorable currency translation effects. Honda reported an operating loss of ¥ 76.2 billion ($944 million), a deterioration of ¥225.1 billion from the same period last year, due primarily to decreased unit sales and increase in fixed cost per unit.

Proj. sales year ending 31 March 2012

Unit (thousands)

Changes from FY2011

   

(thousands)

Motorcycle business

12,705

+ 1,260

Automobile business

3,435

– 77

Power product and Other Businesses

6,075

+ 566

     
Fiscal year ending March 31, 2012    
 

Yen (billions)

Changes FY 2011

Net sales and other operating revenue

8,700

– 2.7%

Operating income

270

– 52.6%

Income before income taxes and

285

– 54.8%

equity in income of affiliates    
Net income attributable to

230

– 56.9%

Honda Motor Co., Ltd.

Yen

 
Basic net income attributable to

127.61

 
Honda Motor Co., Ltd. per common share    

About Ken Zino

Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
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