December 17 2008.

Honda today announced that it now expects a net loss for the second half of fiscal 2008 due to the yen's rapid appreciation and the sharp decline in car sales, particularly in North America.

The company expects full-year group net profits to fall 69% year on year to 185 billion yen, down from the previous projection of a 19% decrease to 485 billion yen.

Sales are forecast to drop 13% to 10.4 trillion yen, down from the previous estimate of a 3% drop to 11.6 trillion yen. Operating profit will likely drop 81% to 180 billion yen, worse than the 42% decline to 550 billion yen that had been expected.

Honda now plans to pay a dividend of 11 yen per share for the October-December period, down from the previously planned 22-yen payout. The company said it has not yet determined the fiscal-2008 full-year dividend, although it had earlier projected 88 yen per share.

Source: Nikkeinet