Honda's First-quarter Profit Dropped 90 Percent

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According to foreign reports, on August 1, Honda released the first quarter earnings.of 2011. Honda's profit of this quarter is 31.7 billion yen, about $ 406 million, a decrease of 90% compared with the same period of last year.

The first-quarter operating profit of the company in 2011 reached 22.58 billion yen. According to statistics, first half of 2011, Honda's cumulative worldwide production is 1.3027 million vehicles, a decrease of 27.7% year on year. Honda's automobile production in Japan is 266,500 vehicles, a decrease of 45.7% compared with the same period of last year.

According to reports, for the profit decline, Honda explained, the profit decline was primarily due to that Japan's earthquake affected the production and the sales. But they are confident with the pace of recovery, thereby they increased the full-year forecast.

It is reported that Honda currently forecast that the fiscal year profit may reach 230 billion yen, about $ 2.9 billion, which is half less than 2010's 534 billion yen profit, but higher than the expected 195 billion yen in the June. Honda will also set the annual revenue to be 8.7 trillion yen, about $ 112 billion, a decrease of 3% than fiscal year 2011, but higher than the forecast of 8.3 trillion yen in the June.

In addition, Honda expects the full-year total global sales will each 3.435 million units, increased by 13.5 million units compared with the forecasts made in June. In the first half fiscal year the company's total sales were 3.512 million units.

In the first half of this year, the market is very low, coupled with the impact of the earthquake in Japan, Japanese companies are even worse. However, the production in August and September will be completely restored to the level before the earthquake.

In the first half, the world's car manufacturers, General Motors is among the top global sales chart, followed by Volkswagen, Toyota, Renault - Nissan. GM's global vehicle sales in the first half increased 11.7% year on year to 4.64 million. This is mainly thanks to the increased demand in China the United States.

Korea Automotive Research Institute even once thought that Toyota sold only 3.01 million in the first half of this year and the Hyundai Kia's sales exceeded Toyota. But according to Toyota's own data, the first half sales are 3.37 million units, still leading Hyundai - Kia. However, Honda's profit of this quarter is 31.7 billion yen, about $ 406 million, a decrease of 90% compared with the same period of last year.


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