Honda Motor sales and profits dipped in the fourth fiscal quarter ended 31 March as the effects of the Sendai region earthquake began to bite.
“[The earthquake] caused damage to certain of Honda’s property, plants and equipment and inventory, and the temporary suspension of production of its plants and research and development activities of the company and its domestic consolidated subsidiaries. As a result, Honda and its domestic consolidated subsidiaries recognized approximately JPY45.7bn of losses,” the automaker said in its results statement. “Honda and its domestic consolidated subsidiaries did not recognise the costs of future restoration activities expected to be incurred in the next fiscal year in the current year consolidated financial statements.
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But full year results were up “considerably” year on year “primarily due to increased unit sales of motorcycles, automobiles and power products and continuing cost reduction efforts, offsetting the impacts of the ‘great east Japan earthquake’, the unfavourable currency effects due to Japanese yen appreciation, and increased R&D expenses, the automaker added.
Honda sold 3,512,000 automobiles worldwide in the fiscal year, up 120,000. Sales rose JPY357.6bn to JPY8,936.8bn, operating income was up JPY206bn to JPY569.7bn and net income rose JPY265.6bn to JPY534bn.
In the fourth quarter, automobile unit sales dipped 14,000 to 1.746m, sales were off JPY66.4bn to JPY2,213bn, operating income fell JPY49.8bn to JPY46.2bn and net income was off JPY27.6bn to JPY44.5bn.
Like Isuzu earlier this week, Honda said the earthquake effects made it unable to forecast results for fiscal 2011/12 for now.
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