April 29 2009.

Honda Motor Co. announced yesterday that it plunged into the red in its fiscal fourth quarter, hurt by stagnant consumer spending in primary markets and the yen's surge.

In the quarter ended March, the company posted a net loss of Y186.1 billion, a swing from the year-earlier profit of Y25.4 billion and an operating loss of Y283.0 billion, reversing the previous year's operating profit of Y168.8 billion. Sales plummeted 42% to Y1.784 trillion from Y3.056 trillion. 

But the result was better than the mean net loss estimate of Y246.47 billion compiled by Thomson Reuters. 

For this fiscal year, the company forecast a net profit of Y40 billion, an operating profit of Y10 billion and sales of Y8.370 trillion.

Its net profit plunged 77% to Y137.01 billion in the fiscal year ended March from Y600.04 billion the previous year. Operating profit plummeted 80% to Y189.64 billion from Y953.11 billion and sales dropped 17% to Y10.011 trillion from Y12.003 trillion.

Honda's earnings are based on U.S. accounting standards.

Source: Nikkei