Honda profit dented even as cri­sis fades

The Myanmar Times - - International Business -

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. –

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