Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Lifestyles
Classified Sites

The Canadian Press - ONLINE EDITION

Honda's quarterly profit more than doubles on weak yen, strong sales ahead of Japan tax hike

A man walks past Honda models on display at Honda Motor Co. headquarters in Tokyo, Friday, April 25, 2014. Honda's profit for the fiscal fourth quarter zoomed to more than double the previous year's as the benefits of a weak yen added to strong sales. (AP Photo/Koji Sasahara)

Enlarge Image

A man walks past Honda models on display at Honda Motor Co. headquarters in Tokyo, Friday, April 25, 2014. Honda's profit for the fiscal fourth quarter zoomed to more than double the previous year's as the benefits of a weak yen added to strong sales. (AP Photo/Koji Sasahara)

TOKYO - Honda said Friday that its profit for the fiscal fourth quarter zoomed to more than double the previous year's as the benefits of a weak yen added to strong sales, but momentum was forecast to ebb as the currency perk wears off.

January-March net profit totalled 170.5 billion yen ($1.67 billion), up from 75.7 billion yen the same period the previous year, the automaker said. Quarterly sales surged 13 per cent to 3.1 trillion yen ($30 billion).

Honda Motor Co. sold nearly 1.2 million vehicles worldwide during the quarter, helped by purchases by Japanese seeking to beat a sales-tax rise on April 1, up from slightly more than 1 million the same period a year earlier.

The Tokyo-based maker of the Odyssey minivan and Accord sedan expects to sell 4.83 million vehicles globally for the fiscal year ending March 2015. It sold 4.3 million vehicles for the fiscal year ended March 2014.

Honda also makes the Asimo walking, talking human-shaped robot that impressed President Barack Obama during his visit to Tokyo this week.

Honda is forecasting a 4 per cent rise in annual profit to 595 billion yen ($5.8 billion).

For the fiscal year just ended, Honda racked up a 574 billion yen ($5.6 billion) profit, up dramatically from 367 billion yen recorded a year earlier, but slightly below the company's more ambitious target given in January for a 580 billion yen ($5.7 billion) profit.

Honda said a temporary shutdown of its Alabama auto plant because of severe winter weather, a slowdown in the Thai market and costs related to recalls in Japan dented profits.

All the major Japanese automakers are expected to report hefty earnings, reflecting the big boost from a weak yen, but their profit projections will underline a momentum loss because the exchange rate effect will diminish over time.

Although the dollar soared to about 100 yen for the past fiscal year from about 80 yen the fiscal year before that, it's unlikely to keep rising at that pace, to 120 yen, for instance.

Honda is expecting the dollar to continue to cost about 100 yen this fiscal year, too.

Toyota Motor Corp., the world's top-selling automaker, reports earnings results May 8. Nissan Motor Co., allied with Renault SA of France, releases results May 12.

Separately, Mazda Motor Corp. reported a nearly seven-fold rise in January-March profit to 58.3 billion yen ($572 million).

Hiroshima-based Mazda tends to benefit from a favourable exchange rate even more than other Japanese automakers do because it relies heavily on exports.

Mazda is expecting an 18 per cent rise in profit for the fiscal year, at 160 billion yen ($1.6 billion).

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media