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Honda sees quarterly profits rise but cuts annual forecast | |
(35 minutes later) | |
Japan's Honda has reported a jump in third-quarter profits as US sales recover, but cut its annual forecast as sales in China and Europe drop. | |
Honda's profits hit 77.4bn yen ($851m; £538m) in the last quarter of 2012, up from 47.6bn yen a year earlier. | |
The firm said profits had also been boosted by a continued recovery from the floods in Thailand in 2011. | |
However, it cut its full-year profit forecast to 370bn yen, compared with its previous projection of 375bn yen. | |
It is the second time in a space of four months that the firm has lowered its full-year profit forecast. In October, Honda had cut its projection to 375bn yen from its earlier forecast of 470bn yen. | |
Growth hurdles | Growth hurdles |
Natural disasters in Thailand and Japan in 2011 had halted production Honda's factories and impacted its sales. | |
However, it has seen a steady recovery since then. Earlier this week, it reported record sales of 3.82 million vehicles for 2012, a jump of 19% from a year earlier. | |
But the firm is also facing some growth hurdles, not least from the continuing sovereign debt crisis in the eurozone. | But the firm is also facing some growth hurdles, not least from the continuing sovereign debt crisis in the eurozone. |
The crisis has hurt region's growth and dented sentiment resulting in a drop in consumer demand in the region's countries. | The crisis has hurt region's growth and dented sentiment resulting in a drop in consumer demand in the region's countries. |
That has, in turn, affected demand for Japanese goods in the region. | That has, in turn, affected demand for Japanese goods in the region. |
Honda's sales to Europe dipped 87% in the October to December quarter, from a year earlier. | Honda's sales to Europe dipped 87% in the October to December quarter, from a year earlier. |
At the same time, the firm has also been hit by the territorial dispute between Japan and China. | At the same time, the firm has also been hit by the territorial dispute between Japan and China. |
The spat, which flared up in September last year, resulted in protests in China which targeted Japanese brands. That has resulted in a drop in Honda's sales to China, the world's biggest car market. | The spat, which flared up in September last year, resulted in protests in China which targeted Japanese brands. That has resulted in a drop in Honda's sales to China, the world's biggest car market. |
The carmaker said its sales to China dipped 68% in the three months to the end of December, from a year earlier. | The carmaker said its sales to China dipped 68% in the three months to the end of December, from a year earlier. |