Honda Q1 net profit plunges, but recovery seen

TOKYO: Japan's Honda Motor on Monday said its net profit for the April-June quarter fell nearly 90 percent on the impact of the March earthquake and tsunami on production and sales and a strong yen.

However, the group raised its forecasts for the full year from an estimate made in June on expectations of a faster-than-expected recovery from the disasters.

Honda said net profit for the fiscal first quarter ended June 30 came to 31.7 billion yen ($394 million), down 88.3 percent on-year, with net sales down 27.4 percent at 1.7 trillion yen.

Operating profit fell 90.4 percent on-year to 22.5 billion yen.

The slump was "mainly caused by the impact of the Great East Japan Earthquake... and the unfavourable foreign currency translation effects," Honda said in a statement.

However, it raised its net profit forecast to 230 billion yen this financial year from a June estimate of 195 billion yen, although the latest figure represented a 56.9 percent drop from the year-earlier profit.

Copyright AFP (Agence France-Presse), 2011