Honda sold 11.5 million motorcycles in FY 2011 compared to 3.5 million cars and trucks.
Honda Motor Company said today in Japan that profits plunged 38% to ¥44.55 billion (~$547 million) in the current fourth quarter as a result of the Japan earthquake and ongoing appreciation of the Japanese Yen.
Honda’s net profit in Q4 is down from ¥72.18 billion in the same quarter a year earlier. This appears to be much more than industry analysts were predicting as the financial toll of the earthquake keeps growing.
Honda – in a likely preview of expected results at Toyota and Nissan – warned that the next quarter of the year, Q1 in the Japanese calendar, would be worse as Honda and its domestic consolidated subsidiaries recognize about ¥45.7 billion yen of losses.
Furthermore, Honda and its subsidiaries did not recognize the costs of future restoration activities expected to be incurred in the next fiscal year in the current consolidated financial statements.
As a result Honda said in a statement that it is “currently unable to reasonably calculate forecasts for consolidated financial results for the fiscal year ending March 31, 2012” due to the impact of Japan Earthquake. Honda will release the forecasts of the consolidated financial results for the fiscal year ending March 31, 2012 as soon as they become available.
While Q4 was a financial disaster for Honda, it did nearly double its net profit to ¥534 billion from ¥268.4 billion in the full fiscal year through 31 March 2011. Honda also increased operating profit 57% to ¥570 billion from ¥364 billion, the result of strong sales in Asia and recovering sales in North America.
