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Honda's profit falls for first time in six years on strong yen |
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News |
May 13, 2000
TOKYO,
MAY 12 (AP) - Honda Motor Co. said Friday that group profit for the fiscal
year that ended March 31 fell for the first time in six years because the
yen rose against the U.S. dollar.
Japan's
third-largest automaker said group net profit for the year fell 14 percent
to 262.42 billion yen (dlrs 2.4 billion) from 305.05 billion yen (dlrs 2.8
billion) the year before.
Sales
during the period dropped 2.1 percent to 6.099 trillion yen (dlrs 56.3
billion) from the previous year's 6.231 trillion yen (dlrs 57.5 billion).
Honda
is especially vulnerable to changes in the yen-dollar rate because half of
all the Accord and Civic sedans and other vehicles it makes are sold in
North America.
Honda
said it lost 620 billion yen (dlrs 5.7 billion) because the yen's 14
percent rise against the dollar decreased the value of dollars earned
overseas.
The
yen averaged of 111 per U.S. dollar in fiscal 1999, compared with 127 yen
the year before.
The
Tokyo-based carmaker said total auto sales rose 6 percent to 2.473 million
vehicles in the year just ended. Sales in North America
jumped 9.5 percent to 1.295 million units, thanks to strong sales of its
Odyssey minivans and Acura TL luxury sedans.
However,
the company said that profit will drop another 28 percent in the fiscal
year through March 2001 as a further rise in the
yen and uncertainty about growth in the United States and Europe outweigh
an expected rebound in Japan.
Honda
said that group net profit for the current fiscal year will drop 28
percent to 190 billion yen (dlrs 1.8 billion) as the Japanese currency
rises another 6 yen to 105 per dollar. Sales are expected to rise 1.7
percent to 6.20 trillion yen (dlrs 57.2 billion). |