JAPAN: Rogue trading hits Honda Motor Q3 pre-tax earnings
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.
Honda says it has lowered its sales target by 13% from earlier car sales target of 731,500 and is predicting sales of 3.3m cars globally for the financial year to March 2012; down 6% year-on-year....
Car sales in India grew at their slowest pace in over two years in June - just 1.62% to 143,370 cars from 141,086 - as higher fuel prices and rising loan rates kept buyers away from showrooms....
New vehicle sales in the Philippines fell by 15.2% to 10.978 units in June, from 12,945 units a year earlier, according to member data released jointly by Chamber of Automotive Manufacturers of the Ph...
Toyota plans to fully normalise its production by October, one month ahead of its initial schedule, due to the recovery of its procurement network which was damaged by the 11 March quake-tsunami disas...
Sales of new Honda cars in China in June fell 29.9% year on year to 35,105 units, the China subsidiary said, blaming a continued shortage of Japanese-made parts in the wake of the 11 March earthquake ...
Toyota Motor's Prius hybrid in June recaptured top spot among domestic sales for the first time in four months, thanks to restoration of the company's parts supply chains, which had been damaged by th...
- COMMENT: Volvo's US sales surge as China reverses
- COMMENT: Ford F-Series production soars
- China's economic turbulence worries auto industry
- Baking Kias at 45C
- THE WEEK THAT WAS: Trouble in Tianjin
- UPDATED IAA debuts list: Audi SQ5 TDI plus added
- Land Rover develops 'see-through trailer' concept
- Jaguar Land Rover scraps Saudi plant plan
- Nissan allocates redesigned Juke to Sunderland
- Brazil Four losing sales faster than industry rate
- Ford Motor Company (F) - Financial and Strategic SWOT Analysis Review
- General Motors Company (GM) - Financial and Strategic SWOT Analysis Review
- Global light vehicle engine technologies market- forecasts to 2030
- Global light vehicle safety systems market- forecasts to 2030
- Global heavy trucks market