Rogue trading hits Honda Motor Q3 pre-tax earnings

JAPAN: Rogue trading hits Honda Motor Q3 pre-tax earnings

By Graeme Roberts | 25 January 2011

Honda Motor on Tuesday said "inappropriate trading activities" by the seafood section of the foodstuff division of consolidated subsidiary Honda Trading Corporation (HT) would reduce the automaker's third fiscal quarter pre-tax earnings by about JPY15bn (US$181.1m).

"The company deeply regrets any concern or difficulty that this matter may have caused its shareholders, business partners or other stakeholders," Honda said in a statement.

It said it learned last month of "inappropriate trading activity with several seafood companies by HT’s seafood section" and immediately formed an investigation committee headed by an executive vice president, Koichi Kondo.

It added that an employee "became involved in purchasing inventory significantly over priced compared to market price, and repetitive trading and circular trading of the same inventory among a number of its business partners".

"The company’s investigation committee is continuing its investigation into the cause, responsible persons, measures to prevent future occurrences, and the occurrence of any similar inappropriate trading activity, and will announce results as soon as they become available," the automaker added.

Honda Trading's main operations include trading of auto and motorcycle parts, raw materials and finished vehicles as well as food products.

In the fiscal year ended March 2010, it had JPY588.6bn in sales, according to a Dow Jones report.

Sectors: Financial, Vehicle manufacturers

Companies: Honda

View next/previous articles

25 Jan 2011 -

HUNGARY: Audi puts further expansion plans in place

25 Jan 2011 -

JAPAN: Nissan ramps up Leaf production

Currently reading -

JAPAN: Rogue trading hits Honda Motor Q3 pre-tax earnings

25 Jan 2011 -

CHINA: Porsche denies plans for local SUV production

25 Jan 2011 -

COMMENT: UK industry needs to sell itself better, starting with UK Gov

There are currently no comments on this article

Be the first to comment on this article

Related company research

Honda 2010 company profile edition 2

This latest edition just-auto company profile is part of a major series of reports that will provide you with convenient and concise analysis on the world's largest component and vehicle manufacturers. Each individual company is profiled in a consist...