HONDA PROFITS SQUEEZED
April 25 2008.

Honda Motor Co.today reported an 86% slide in net profit for the January-March quarter, squeezed by the yen's strength and tax payment provisions. 

The company also faces a tough outlook for this fiscal year, projecting a drop in net profit. 

Honda posted a net profit of Y25.43 billion in the three months ended March 31, down sharply from Y176.18 billion a year earlier. Its operating profit fell 33% to Y168.84 billion.

Its sales fell 1.0% to Y3.056 trillion from Y3.088 trillion.

The net profit undershot the Y684.4 billion consensus forecast of 21 analysts compiled by Nikkei Quick.

For the current fiscal year through March, Honda - which is also the world's biggest motorcycle maker by sales volume - expects its net profit to fall 18% to Y490 billion, its operating to decline 32% to Y650 billion and its sales to rise 1.1% Y12.140 trillion.

Honda reported its earnings after the close of the Tokyo Stock Exchange.

Its shares ended Friday up 3.7% at Y3,330.


Source: Nikkei Net