JAPAN/FILE: Honda forecasts a worse-than-expected 65 percent drop in profit for the year to March after natural disasters in Japan and Thailand and a strong yen
Record ID:
466199
JAPAN/FILE: Honda forecasts a worse-than-expected 65 percent drop in profit for the year to March after natural disasters in Japan and Thailand and a strong yen
- Title: JAPAN/FILE: Honda forecasts a worse-than-expected 65 percent drop in profit for the year to March after natural disasters in Japan and Thailand and a strong yen
- Date: 1st February 2012
- Summary: AYUTTHAYA, THAILAND (FILE) (REUTERS) VARIOUS OF CARS AT HONDA PLANT DAMAGED BY FLOODING PEOPLE WATCHING DEMOLITION OF DAMAGED CARS IN TENT CAR BEING DEMOLISHED WORKER DEMOLISHING CAR WORKERS STANDING AND WATCHING THE DEMOLITION PEOPLE WATCHING FROM TENT CAR BEING COMPRESSED BY MACHINE CAR BEING LOWERED BY MACHINE CLAW TOKYO, JAPAN (FILE) (REUTERS) VARIOUS OF CAR DRIVING ON ROAD CARS PARKED VARIOUS OF CAR ON DISPLAY AT TRADE SHOW
- Embargoed: 16th February 2012 12:00
- Keywords:
- Location: Japan, Thailand
- City:
- Country: Japan
- Topics: Business,Economy
- Reuters ID: LVA8L8O5JARFFFMO2ECSYF6IG8EH
- Story Text: Honda Motor on Tuesday (January 31) forecast a worse-than-expected 65 percent drop in profit for the year to March after natural disasters in Japan and Thailand hammered it harder than its rivals while the strong yen delivered an added blow.
Japan's No.3 automaker was the slowest to recover from supply chain disruptions after the earthquake and tsunami in March, while it was alone in having a car factory inundated by historic floods in Thailand, Southeast Asia's export hub.
Before results were announced, Honda's shares ended down 0.6 percent, while the benchmark Nikkei index closed in the black, up 0.1 percent.
For the business year to March 31, 2012, Honda said it expects operating profit of 200 billion yen ($2.6 billion USD), hit also by an estimated 8-yen fall in the dollar to 78 yen.
The company said it lost an estimated 260,000 vehicles of production globally from supply disruptions caused by the Thai floods.
In 2011, Honda's global output dropped by a fifth to 2.91 million cars, slipping below 3 million for the first time in eight years.
The new profit forecast is far short of the 270 billion yen it projected in August before withdrawing that guidance, citing uncertainty over when car production could restart in Thailand. - Copyright Holder: FILE REUTERS (CAN SELL)
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