Honda profit falls 77% in 2011’s first half image

Honda Motor Co. announced today that its fiscal Q2 profit fell 56%, to ¥60.4 billion ($760 million), while its net income for the first half of the fiscal year registered a fall of 77,4% (to ¥92.2 billion) compared to last year’s results. Also, the company stated that it cannot offer a forecast for the fiscal year ending March 31, 2012, as the impact of the Thai floods is still being assessed.

For 2011’s March – Sept. period, the 77,4% fall in profit, reaching ¥92.2 billion, is being attributed to the negative impact of March’s earthquake and tsunami over raw materials price and availability, together with the unfavorable effects of a stronger yen and lower sales and production. Previously, Honda estimated a net profit of ¥230 billion.

The automaker was forced to halt operations at its 170,000 cars/year immersed plant in Thailand and is still assessing the impacts of the devastating floods which inundated 80% from the 77 provinces in Thailand since July 2011.

The main figures for July-September are: profit down 56% from Y135.9 in the same quarter a year earlier to ¥60.4 billion in 2011, operating profit diminished with 81.1% to ¥75 billion, quarterly sales sank 16.3% from a year earlier to ¥1.885 trillion ($24.6 billion).

For the current fiscal year through March, Honda had previously forecast a net profit of ¥230 billion.

Worse than its main competitors, in 2011 Honda’ shares registered a 22 percent loss until now, while Toyota’s shares dropped 18 percent and Nissan’s – only 6.5 percent.