December 21 2006
Honda expects its global sales of motorcycles to rise 3% to 12.7 million units in the year to Dec. 31.
The company also said it will spend Y25 billion to build a new engine factory in Saitama Prefecture, north of Tokyo, to meet growing demand for fuel-efficient cars. The plant will start operating in the summer of 2009, with an annual production capacity of 200,000 engines, Honda said.
The upbeat projections reflect Honda's steady growth, particularly in overseas markets, where its relatively fuel-efficient cars have been attracting customers amid high gasoline prices.
Honda posted a record group net profit for the fifth straight year in the fiscal year ended March 2006, helped by strong sales and a pension-related gain. For the current fiscal year, it expects its net profit to slip, mainly due to an absence of such one-off pension gains.

Source: NikkeiNet