Honda Automobile's first-quarter profit fell sharply by 90% year-on-year in fiscal 2011

According to foreign reports, on August 1st, Honda Motor Co., Ltd. announced its financial report for the first quarter of fiscal 2011 (April-June 2011). Honda's profit for the quarter was 31.7 billion yen (about 406 million U.S. dollars), a sharp 90% year-on-year increase.

In the first quarter of 2011, the company’s operating profit reached 22.58 billion yen. According to statistics, in the first half of 2011, Honda Motor Company's global automobile production totaled 1.3027 million units, down 27.7% year-on-year, of which, Honda’s domestic automobile production in Japan was 266,500 units, down 45.7% year-on-year.

According to reports, for profit decline, Honda explained that the decline in profits was mainly due to the impact of the Great Japan Earthquake on production and sales, but it has confidence in the pace of recovery, thus raising the forecast for the full fiscal year.

It is reported that Honda currently predicts that the profit for the current fiscal year will reach 230 billion yen (2.9 billion U.S. dollars), which is less than half of the 534 billion yen profit in fiscal 2010, but higher than the 195 billion yen expected in June (25 One hundred million U.S. dollars). Honda also set annual revenue forecast at 8.7 trillion yen (112 billion U.S. dollars), a decrease of 3% from fiscal 2011, but higher than the 8.3 trillion yen (106 billion U.S. dollars) forecast for June.

In addition, Honda Motors expects total global sales for the fiscal year to reach 3.435 million units, which is a 135,000 increase over the forecast made in June. In the previous fiscal year, the company sold 3.512 million vehicles.

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