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Honda's Earnings Fall
Honda Motor Co.'s net revenue in the fiscal fourth quarter ended March 31 rose 8% to 3.4 trillion yen ($28.2 billion).
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Honda Motor Co.'s net revenue in the fiscal fourth quarter ended March 31 rose 8% to 3.4 trillion yen ($28.2 billion).
But consolidated new-car sales declined slightly to 915,000 units, and operating income fell 32% to 112 billion yen ($941 million). Net income for the period plunged 43% to 98 billion yen ($824 million).
Honda attributes the diminished quarterly results to higher marketing and administrative expenses, costly recalls and a 22% drop in domestic car sales.
Net revenue for the full fiscal year fell 7% to 12.6 trillion yen ($106 billion). Operating income shrank 13% to 652 billion yen ($5.5 billion), and net income declined 9% to 523 billion ($4.4 billion).
Honda is switching its accounting method to the International Financial Reporting Standards for the fiscal year that began on April 1. Under IFRS, the company predicts 2015-2016 revenue of 14.5 trillion yen ($122 billion), an operating profit of 685 billion yen ($5.8 billion) and net income of 525 billion yen ($4.4 billion).
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