Honda’s net profit plunges 95.6 percent

July 29th, 2009 - 3:57 pm ICT by IANS  

Tokyo, July 29 (DPA) Honda Motor Co saw its net profit plunge 95.6 percent to 7.56 billion yen ($80 million) in the April-to-June quarter because of a global decline in auto sales, the Japanese carmaker said Wednesday.
Although cost-cutting measures showed some positive effects in earnings results in Honda’s first quarter, Japan’s second-largest carmaker said production cuts and a stronger yen reduced operating profit in those three months.

Honda’s operating profit tumbled 88 percent to 25.16 billion yen, and sales fell 30.2 percent to 2 trillion yen from the same period a year earlier.

Despite the quarterly results, Honda raised its net-profit forecast for the full business year through March to 55 billion yen from 40 billion yen it had projected earlier.

The firm also expected an operating profit of 70 billion yen, up from 10 billion yen from an earlier forecast, thanks to cuts in administrative costs and other expenses.

But sales predictions were revised downward by 1.1 percent to 82.8 trillion yen.

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