A Reuters poll of eight analysts has produced an average forecast of 149 billion yen ($US1.12 billion) in October-December consolidated operating profit for Honda Motor Company, a 55 percent rise year-on-year and a record for the third quarter. The company is due to report results on February 5.
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Reuters said that predictions ranged from 165 billion yen to 125 billion yen, with some analysts at the lower end of the range factoring in higher research and development spending.
The good news is due to a weak yen, strong sales in Japan and a resilient performance in the United States, Reuters said.
High points include strong sales of the Japan Car of the Year-winning Fit (Jazz) subcompact in Japan and sell-out sales of the Odyssey minivan in the US and, according to Reuters, analysts say there is little to complain about.
“Europe is still less than pleasing, but in North America volumes are firm and sales incentives are down, and in Japan they have had a stellar performance. Overall report card: A minus,” said HSBC Securities auto analysts Chris Richter told Reuters.
Projections for net profit produced an average estimate of 85 billion yen, a 79 percent rise over the same period a year earlier. That would also be a third quarter record and equivalent to earnings per share of 87 yen, Reuters said.
Honda has already said this year would see record profits and has forecast a full-year operating profit of 550 billion yen, a rise of 35 percent from the previous year, an a net profit of 330 billion yen, up 42 percent from the previous year, Reuters added.
