Daily Management Review

Honda's annual profit plummets by 42.4%


05/08/2019


Net profit of the Japanese automaker Honda Motor Co. declined by 42.4% to 610.3 billion yen in the fiscal year that ended on March 31, 2019. Operating profit declined by 12.9% to 726.3 billion yen.



pixabay
pixabay
Revenue rose by 3.4% to 15.89 trillion yen, the company said. Operating profit in the financial quarter IV fell by 66.6% to 42.4 billion yen against 126.8 billion yen in the fourth quarter of the year before last, mainly because of the costs associated with optimizing production capacity in Europe, as well as unfavorable exchange rates difference

The company's net loss in the last quarter was 13 billion yen, compared with a net profit of 107.75 billion yen a year earlier.

In February, Honda announced reorganization of the global production network, within which a number of enterprises in Europe are to be closed in 2021. In this regard, the company suffered a one-off loss of 68.09 billion yen.

Meanwhile, Honda's revenue in the fourth quarter increased by 3.4% to 4.049 trillion yen thanks to increased revenues from car sales (+ 3%) and financial services (+ 17%). Motorcycle production unit revenue decreased by 6%.

According to Honda's forecast, operating profit will increase in the current fiscal year by 6% to 770 billion yen, net profit - by 9% to 665 billion yen, revenue will decrease by 1.2% to 15.7 trillion yen.

Honda CEO Takahiro Hachigo said on Wednesday that the company intends to reduce the range of models of cars produced by 2025, as well as to achieve full utilization of the company's global production capacity by 2022.

Honda shares fell 2.8% in Tokyo on Wednesday; the company released its statements after the market closed.

source: ft.com






Science & Technology

Tech giants face stricter government regulation in the US

Nestle's Head: Veggie meat is new megatrend

Huawei may introduce Android replacement in August

Are US high-tech investors causing brain drain in Europe?

'Russia's Google' Yandex Was Hacked By Western Intelligence For Spying: Reuters

Reuters: Chinese hackers were stealing data from IT giants for years

China's first solar power molten salt plant sets record

WSJ announces imminent start of Boeing 737 MAX flight tests

Study: Machine learning is five times more harmful for the environment than a car

Would Singapore Be The First One To Bring Lab Grown Shrimps To The Global Market?

World Politics

World & Politics

France announces new tax for air fares

Europe Concerned Over Iran Move To Breach Uranium Enrichment Cap

Singapore To Build ‘$296 Million’ Smart Next-Gen Army Training Centre

No More Sales Of E-Cigarettes In San Francisco?

US ‘Hell-Bent On Hostile Acts’ Even After Trump-Kim Agreement, Says North Korea

Italy avoids EU sanctions for high national debt

Trump allocates 4.6 bln to help migrants

Iran Says Trump’s Belief That US-Iran War Would Be Short Is “An Illusion”