Honda profit dented even as crisis fades
HONDA’S quarterly net profit slipped from a year ago despite the fading impact of an exploding airbag crisis at supplier Takata.
The Japanese automaker blamed an income tax increase for its net profit in the April-June quarter slipping 6.1 percent to 174.6 billion yen (US$1.7 billion).
However, the bottom-line figure still beat market expectations owing to stronger sales in the United States and China, the world’s biggest vehicle market.
Honda also said operating profit rose 11.5pc as cost cuts helped offset a rally in the yen – which takes a bite out of exporters’ profits – and temporary production shutdowns at factories in southern Japan.
The region was hit by two strong earthquakes in April and some of the country’s biggest firms, including Honda and rival Toyota, were hit by factory outages in the wake of the disaster.
Last week, Japan’s number-two automaker Nissan blamed the yen’s surge and struggles in its home market for the first decline in April-June net profit in four years. –