Honda's 2nd Quarter Profits Plunged 90%

Japan’s number three carmaker saw profits for the April-June quarter plunge nearly 90 percent due to disruption caused by the March 11 earthquake and tsunami. But Honda’s full-year forecast has been revised upward as it sees a faster-than-expected return to normal production levels.

Honda Motor Co. said its April-June profit tumbled to ¥31.7 billion ($409.4 mil.) from ¥272.4 billion ($3.52 bil.) profit in 2010. Even that modest profit would have been red ink but for its booming motorcycle business. However, it expects a ¥230 billion ($2.97 bil.) profit for the fiscal year ending March 2012, up from the ¥195 billion forecast in June.

Honda’s profit for the fiscal year ending this April was ¥534 billion ($6.9 bil.).

Honda boosted its annual sales projection to ¥8.7 trillion ($112.4 bil.), 3 percent lower than the previous year, but more than the ¥8.3 trillion ($106 bil.) it had projected in June.

Honda expects to sell 3.435 million vehicles worldwide this fiscal year, 135,000 more than it had forecast in June but slightly fewer than the 3.512 million vehicles sold in the previous fiscal year.

Honda’s soaring motorcycle sales will hit 12.7 million for the fiscal year through March 2012, up from 11.45 million the previous year. Its June forecast had been 12.645 million for this year.

All three top Japanese carmakers are now expecting a quicker return to full normal production levels than anticipated after the March 11 earthquake had disrupted supplies and production.