2023 Author: Eric Donovan | [email protected]. Last modified: 2023-05-21 15:44
Honda is lowering its sales forecast because of the island dispute with China. The Japanese expect a decline of 4.9 percent for the financial year that runs until March 31, 2013. The profit will also be lower.
The Japanese car maker Honda is feeling the consequences of the island dispute between Japan and China. Honda Motor expects a net profit of 375 billion yen (3.6 billion euros) in the current fiscal year through March 31, 2013, as the company announced on Monday. That would be 20 percent less than previously expected. Honda cut its sales forecast 4.9 percent to 9.8 trillion yen. The background is on the one hand the strong yen, on the other hand the boycott of Japanese goods in China as a result of a dispute between the two countries over uninhabited rocky islands in the East China Sea. In mid-October, Toyota announced that it would stop production in China because of the island dispute.
The consequences of the earthquake disaster were overcome
Honda had only just overcome the consequences of the earthquake and tsunami disaster last year. In the July through September quarter, net income rose 36 percent compared to the same period last year to 82.2 billion yen. Sales also increased 20 percent to 2.27 trillion yen.
In view of the strong yen and the China crisis, however, Honda had to revise its global sales forecast for the entire fiscal year downwards by 180,000 to 4.12 million cars. In China, the car company now expects only 620,000 cars to be sold between January and December instead of the targeted 750,000. (dpa)