ID :
36275
Thu, 12/18/2008 - 14:24
Auther :
Shortlink :
http://m.oananews.org//node/36275
The shortlink copeid
Honda Expects 81 Pct Group Profit Fall, 1st Parent-Only Net Loss in FY '08
Tokyo, Dec. 17 (Jiji Press)--Honda Motor Co. said Wednesday it has sharply slashed its group earnings estimates for fiscal 2008 due to a steep decline in global automobile demand and the yen's upsurge.
On an unconsolidated basis, the major automaker is expected to log
its first-ever net loss of 55 billion yen, against the previous net profit
estimate of 148 billion yen, for the year ending in March, Honda also said.
Honda estimates fiscal 2008 group net profit at 185 billion yen,
down from the previously estimated 485 billion yen.
The operating profit projection was lowered to 180 billion yen from
550 billion yen and the sales projection to 10.4 trillion yen from 11.6
trillion yen.
It is the third time that Honda has lowered its fiscal 2008
earnings estimates.
The company now assumes the dollar's exchange rate at 101 yen, down
from previously projected 103 yen, and the euro's at 136 yen, down from 145
yen.
To cope with the falling vehicle demand, Honda will reduce
production by an additional 54,000 units in Japan by the end of March.
It will cut 450 more nonregular workers by early February to lower
the overall temporary workforce to around 3,000 from nearly 4,500 at the end
of November.
For October-March, Honda is bracing for a group net loss, the first
red ink on a half-year basis in the 2000s.
Honda President Takeo Fukui said at a press conference that the
business environment is rapidly worsening day by day, adding that he has yet
to detect signs of a turnaround.
Honda's global automobile sales in fiscal 2008 are now seen
totaling 3.65 million units, down from the earlier forecast 4,015,000 units,
he said.
Honda said that it will freeze its plan to release its Acura-brand
luxury vehicles in the Japanese market in 2010.
In order to take responsibility for the company's poor performance,
Honda will review board members' bonuses and cut their monthly remuneration
by 10 pct from January 2009.
Furthermore, the launches of operations at a Honda plant in Yorii,
Saitama Prefecture, north of Tokyo, and a subsidiary's new plant in
Yokkaichi, Mie Prefecture, central Japan, will be delayed by more than one
year from the initially planned 2010.
Honda will start producing the Fit subcompact car for shipments to
the United States and Canada at its plant in Sayama, Saitama Prefecture,
whose operating rate remains low.
On an unconsolidated basis, the major automaker is expected to log
its first-ever net loss of 55 billion yen, against the previous net profit
estimate of 148 billion yen, for the year ending in March, Honda also said.
Honda estimates fiscal 2008 group net profit at 185 billion yen,
down from the previously estimated 485 billion yen.
The operating profit projection was lowered to 180 billion yen from
550 billion yen and the sales projection to 10.4 trillion yen from 11.6
trillion yen.
It is the third time that Honda has lowered its fiscal 2008
earnings estimates.
The company now assumes the dollar's exchange rate at 101 yen, down
from previously projected 103 yen, and the euro's at 136 yen, down from 145
yen.
To cope with the falling vehicle demand, Honda will reduce
production by an additional 54,000 units in Japan by the end of March.
It will cut 450 more nonregular workers by early February to lower
the overall temporary workforce to around 3,000 from nearly 4,500 at the end
of November.
For October-March, Honda is bracing for a group net loss, the first
red ink on a half-year basis in the 2000s.
Honda President Takeo Fukui said at a press conference that the
business environment is rapidly worsening day by day, adding that he has yet
to detect signs of a turnaround.
Honda's global automobile sales in fiscal 2008 are now seen
totaling 3.65 million units, down from the earlier forecast 4,015,000 units,
he said.
Honda said that it will freeze its plan to release its Acura-brand
luxury vehicles in the Japanese market in 2010.
In order to take responsibility for the company's poor performance,
Honda will review board members' bonuses and cut their monthly remuneration
by 10 pct from January 2009.
Furthermore, the launches of operations at a Honda plant in Yorii,
Saitama Prefecture, north of Tokyo, and a subsidiary's new plant in
Yokkaichi, Mie Prefecture, central Japan, will be delayed by more than one
year from the initially planned 2010.
Honda will start producing the Fit subcompact car for shipments to
the United States and Canada at its plant in Sayama, Saitama Prefecture,
whose operating rate remains low.
