Honda is set to be the only one of Japan’s seven automakers to post a profit with a fiscal first half JPY60bn operating surplus, reports said on Thursday.
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It had forecast a JPY10bn loss. Cost-cutting and solid sales of fuel-efficient cars were behind the return to the black, the Nikkei business daily said.
The reported first half figure implies an operating profit of JPY34.8bn for the July-September quarter, which would be below the average estimate for a JPY41.7bn profit in a poll of five analysts by Thomson Reuters.
Honda said in a statement the Nikkei’s figures were not based on anything announced by the company. It is scheduled to announce its first half results on 27 October.
First half sales likely fell 30% to JPY4.1 trillion, beating the company’s forecast for JPY3.92 trillion, the Nikkei said.
Honda’s car sales in Japan increased 1% in volume terms, helped in part by government tax incentives for fuel-efficient cars. Car sales were also solid in emerging markets and the motorcycle division also performed well, helped by growing demand in India, Reuters said, citing the Nikkei.
H1 were also boosted by a weaker than expected yen in Q2, the Nikkei said.
Honda is now expected to record an operating profit of over JPY100bn for the full year to March 2010, beating its forecast of JPY70bn, the Nikkei added.
