HONDA Posts Record First-Quarter Profits ...(new articles on Hondas Success in 2008)
07-25-08, 11:17 AM
#1
Super Moderator
Thread Starter
HONDA Posts Record First-Quarter Profits ...(new articles on Hondas Success in 2008)
Honda posts record first-quarter profits
AFP - Fri Jul 25, 05:44 AM EDT
TOKYO (AFP) - Honda Motor Co. said Friday its net profit rose 8.1 percent to hit a record high for the fiscal first-quarter on brisk demand in emerging markets such as China and Brazil.
But Japan's second-largest automaker kept its forecast for a slide in annual earnings due to a weaker global economy, a stronger yen and the soaring cost of raw materials including steel.
The company posted net profit of 179.61 billion yen (1.68 billion dollars) for the three months to June.
Operating profit edged down 0.2 percent from a year earlier to 221.35 billion yen as revenue dropped 2.2 percent to 2.87 trillion yen.
Solid demand in Asia and emerging markets such as Brazil buoyed Honda's earnings, said executive vice president Koichi Kondo.
But he warned of risks ahead, including a slowing economy, currency movements and higher fuel prices at the pump.
"In the first quarter alone, we saw a significant rise in material prices. We expect more price rises to come," he told reporters. "If the current weak industry trend continues, we must reform drastically."
Honda cut its forecast for operating profit for the full fiscal year to March to 630 billion yen from 650 billion yen previously, which would mark a 33.9 percent plunge from the previous year.
Net earnings are expected to fall 18.3 percent to 490 billion yen as revenue edges up 1.1 percent to 12.13 trillion yen.
Honda sold 962,000 vehicles in the first quarter, up 1.7 percent from a year earlier. Weak demand in Japan, where sales fell 5.9 percent, was offset by robust demand in emerging markets. Automobile sales in North America slipped 1.1 percent to about 460,000 vehicles.
Japanese automakers have enjoyed brisk profits in the giant US auto market in recent years, helped by firm demand for fuel-efficient cars and a weak yen.
But a US economic slowdown, a falling dollar and soaring raw materials costs are now weighing on their earnings prospects.
Honda has reduced its global production as it shifts resources away from sports utility vehicles and into small cars, Kondo said.
"We have been trying to build flexible production systems," he said. "Our future competitiveness will depend on how fast we can change and how flexible we can be as market conditions change."
Honda, along with rival Toyota Motor, is one of the pioneers of environmentally friendly cars, which have proven to be major hits, particularly in the United States, at a time of soaring oil prices.
Honda plans to introduce in early 2009 a low-cost hybrid, which are equipped with an electric motor and a standard petrol engine and are more economical and environmentally friendly than conventional autos.
AFP - Fri Jul 25, 05:44 AM EDT
TOKYO (AFP) - Honda Motor Co. said Friday its net profit rose 8.1 percent to hit a record high for the fiscal first-quarter on brisk demand in emerging markets such as China and Brazil.
But Japan's second-largest automaker kept its forecast for a slide in annual earnings due to a weaker global economy, a stronger yen and the soaring cost of raw materials including steel.
The company posted net profit of 179.61 billion yen (1.68 billion dollars) for the three months to June.
Operating profit edged down 0.2 percent from a year earlier to 221.35 billion yen as revenue dropped 2.2 percent to 2.87 trillion yen.
Solid demand in Asia and emerging markets such as Brazil buoyed Honda's earnings, said executive vice president Koichi Kondo.
But he warned of risks ahead, including a slowing economy, currency movements and higher fuel prices at the pump.
"In the first quarter alone, we saw a significant rise in material prices. We expect more price rises to come," he told reporters. "If the current weak industry trend continues, we must reform drastically."
Honda cut its forecast for operating profit for the full fiscal year to March to 630 billion yen from 650 billion yen previously, which would mark a 33.9 percent plunge from the previous year.
Net earnings are expected to fall 18.3 percent to 490 billion yen as revenue edges up 1.1 percent to 12.13 trillion yen.
Honda sold 962,000 vehicles in the first quarter, up 1.7 percent from a year earlier. Weak demand in Japan, where sales fell 5.9 percent, was offset by robust demand in emerging markets. Automobile sales in North America slipped 1.1 percent to about 460,000 vehicles.
Japanese automakers have enjoyed brisk profits in the giant US auto market in recent years, helped by firm demand for fuel-efficient cars and a weak yen.
But a US economic slowdown, a falling dollar and soaring raw materials costs are now weighing on their earnings prospects.
Honda has reduced its global production as it shifts resources away from sports utility vehicles and into small cars, Kondo said.
"We have been trying to build flexible production systems," he said. "Our future competitiveness will depend on how fast we can change and how flexible we can be as market conditions change."
Honda, along with rival Toyota Motor, is one of the pioneers of environmentally friendly cars, which have proven to be major hits, particularly in the United States, at a time of soaring oil prices.
Honda plans to introduce in early 2009 a low-cost hybrid, which are equipped with an electric motor and a standard petrol engine and are more economical and environmentally friendly than conventional autos.
.
07-25-08, 03:22 PM
#4
Pole Position
Bailed out? What US car co. was bailed out? Oh, you mean Chrysler? No, it was a loan, and it was paid back in full, with interest, within 24 months.
07-25-08, 03:45 PM
#5
Lexus Fanatic
Honda's long-running strategy of being in the forefront of new engine technology, Swiss-Watch build/assembly quality, and Rock-of-Gibraltar reliability of its vehicles is paying off. Consumer Reports, recently, named Honda as the best overall vehicle manufacturer selling in the American market, with Subaru close behind. Those are the only two manufacturers whose entire line of vehicles was recommended by CR.
I agree. You will notice, in my own auto reviews, that, in general, I have given Honda products some of my best opinions for overall vehicle quality. Honda-badged vehicles, in some instances, IMO, are better-designed and built than their own Acura counterparts, with the CR-V as one of the best examples. The best Acura product, IMO, is clearly the RL.....Honda, obviously, does not market a version of it in the U.S., but does so overseas.
I agree. You will notice, in my own auto reviews, that, in general, I have given Honda products some of my best opinions for overall vehicle quality. Honda-badged vehicles, in some instances, IMO, are better-designed and built than their own Acura counterparts, with the CR-V as one of the best examples. The best Acura product, IMO, is clearly the RL.....Honda, obviously, does not market a version of it in the U.S., but does so overseas.
Last edited by mmarshall; 07-25-08 at 03:51 PM.
Trending Topics
08-27-08, 06:23 AM
#8
Honda's Moment
Honda's Moment Arrives
By Warren Brown
Sunday, August 24, 2008; Page G02
NEW YORK
Honda could have been a contender. But it settled for being a winner instead.
The Japanese automobile manufacturer historically has ranked near the middle of the world's top 10 car companies in annual sales, content to earn a living selling mostly small cars with small engines that run nicely on relatively small amounts of gasoline.
That strategy once spawned detractors -- automotive journalists and some industry analysts who urged Honda to join the big league, to start rolling out big cars with big engines, to serve up something like a hot coupe with a banging V-8.
There were rumors that Honda would take the bait. "Those rumors have been around for 20 years," said Dan Bonawitz, Honda's U.S. vice president for corporate planning, speaking to journalists here.
Honda nibbled, offering up the car-based Ridgeline pickup, a bevy of mid-size sport-utility vehicles, and several impressive Acura and Honda sedans with V-6 engines. But Honda mostly remained true to its small-engine legacy, resisting the pressure to produce something with a V-8 and refusing to join Toyota and Nissan in taking on Detroit in the battle for big-truck supremacy.
"We chose to position ourselves for sustainable success," Bonawitz said.
Bonawitz has been saying that kind of thing for several years. But many of us in the media dismissed it as the convenient excuse of a company that didn't know how to make a competitive V-8.
"You could be a contender," we told Honda. "You could play with the majors. Look, even Hyundai is coming out with a V-8 in its Genesis luxury car. Are you guys going to let the Koreans beat you?"
Bonawitz and his people didn't listen. They just kept cranking out cars and pseudo-trucks -- the Ridgeline isn't a real truck -- with four-cylinder and six-cylinder engines. As a result, Honda is now in a league of its own, experiencing steady increases in vehicle sales in a market where most of its rivals are faltering.
Look at the devastation of the U.S. automotive landscape. Toyota is down. Nissan is down. General Motors and Ford are way down. Chrysler is on life support, awaiting rescue from potential partners who can supply it with the cars, especially small cars, it desperately needs to survive.
Honda, meanwhile, is expanding production of its hot-selling Civic compact cars in the United States. It is trying to cope with soaring consumer demand -- up nearly 72 percent in 2008 over 2007 -- for its Fit subcompact, which has been smartly redesigned for 2009.
Honda is planning annual U.S. sales of 85,000 Fits, which is so globally popular that the company is assembling it at plants in Japan, Brazil, Thailand and Indonesia.
"Our business strategy is more like that of the tortoise than it is the hare," Bonawitz said. "We might not be the first to come out with the biggest engine. But we concentrate on what our consumers want -- quality, efficiency, innovation. That doesn't always make a big splash. But it helps us to survive in challenging times like these."
That does not mean Honda will never produce a V-8 for the U.S. market. The company certainly knows how to produce powerful engines and fast cars, as evidenced by the success of Honda-engineered products in a variety of racing venues.
But, unlike its Detroit corporate brethren, Honda never really put much stock in the notion of winning at the track on Sunday and selling in the showroom on Monday. At Honda, a car for the track is one thing. A car for the practical demands of daily life is quite another. Put another way, the company has long understood that getting something right on the track does not ensure getting it right in the marketplace.
A Honda V-8?
Bonawitz laughed.
"These are very challenging times for our industry," he said. "We are witnessing what is likely to be a watershed moment for the American automobile industry" -- a moment when smart power, getting the most out of an engine using the least amount of fuel, trumps horsepower, Bonawitz said.
"At Honda," he added, "we've always been geared toward this moment."
By Warren Brown
Sunday, August 24, 2008; Page G02
NEW YORK
Honda could have been a contender. But it settled for being a winner instead.
The Japanese automobile manufacturer historically has ranked near the middle of the world's top 10 car companies in annual sales, content to earn a living selling mostly small cars with small engines that run nicely on relatively small amounts of gasoline.
That strategy once spawned detractors -- automotive journalists and some industry analysts who urged Honda to join the big league, to start rolling out big cars with big engines, to serve up something like a hot coupe with a banging V-8.
There were rumors that Honda would take the bait. "Those rumors have been around for 20 years," said Dan Bonawitz, Honda's U.S. vice president for corporate planning, speaking to journalists here.
Honda nibbled, offering up the car-based Ridgeline pickup, a bevy of mid-size sport-utility vehicles, and several impressive Acura and Honda sedans with V-6 engines. But Honda mostly remained true to its small-engine legacy, resisting the pressure to produce something with a V-8 and refusing to join Toyota and Nissan in taking on Detroit in the battle for big-truck supremacy.
"We chose to position ourselves for sustainable success," Bonawitz said.
Bonawitz has been saying that kind of thing for several years. But many of us in the media dismissed it as the convenient excuse of a company that didn't know how to make a competitive V-8.
"You could be a contender," we told Honda. "You could play with the majors. Look, even Hyundai is coming out with a V-8 in its Genesis luxury car. Are you guys going to let the Koreans beat you?"
Bonawitz and his people didn't listen. They just kept cranking out cars and pseudo-trucks -- the Ridgeline isn't a real truck -- with four-cylinder and six-cylinder engines. As a result, Honda is now in a league of its own, experiencing steady increases in vehicle sales in a market where most of its rivals are faltering.
Look at the devastation of the U.S. automotive landscape. Toyota is down. Nissan is down. General Motors and Ford are way down. Chrysler is on life support, awaiting rescue from potential partners who can supply it with the cars, especially small cars, it desperately needs to survive.
Honda, meanwhile, is expanding production of its hot-selling Civic compact cars in the United States. It is trying to cope with soaring consumer demand -- up nearly 72 percent in 2008 over 2007 -- for its Fit subcompact, which has been smartly redesigned for 2009.
Honda is planning annual U.S. sales of 85,000 Fits, which is so globally popular that the company is assembling it at plants in Japan, Brazil, Thailand and Indonesia.
"Our business strategy is more like that of the tortoise than it is the hare," Bonawitz said. "We might not be the first to come out with the biggest engine. But we concentrate on what our consumers want -- quality, efficiency, innovation. That doesn't always make a big splash. But it helps us to survive in challenging times like these."
That does not mean Honda will never produce a V-8 for the U.S. market. The company certainly knows how to produce powerful engines and fast cars, as evidenced by the success of Honda-engineered products in a variety of racing venues.
But, unlike its Detroit corporate brethren, Honda never really put much stock in the notion of winning at the track on Sunday and selling in the showroom on Monday. At Honda, a car for the track is one thing. A car for the practical demands of daily life is quite another. Put another way, the company has long understood that getting something right on the track does not ensure getting it right in the marketplace.
A Honda V-8?
Bonawitz laughed.
"These are very challenging times for our industry," he said. "We are witnessing what is likely to be a watershed moment for the American automobile industry" -- a moment when smart power, getting the most out of an engine using the least amount of fuel, trumps horsepower, Bonawitz said.
"At Honda," he added, "we've always been geared toward this moment."
08-27-08, 07:03 AM
#10
No
08-27-08, 07:08 AM
#11
Honda's long-running strategy of being in the forefront of new engine technology, Swiss-Watch build/assembly quality, and Rock-of-Gibraltar reliability of its vehicles is paying off. Consumer Reports, recently, named Honda as the best overall vehicle manufacturer selling in the American market, with Subaru close behind. Those are the only two manufacturers whose entire line of vehicles was recommended by CR.
I agree. You will notice, in my own auto reviews, that, in general, I have given Honda products some of my best opinions for overall vehicle quality. Honda-badged vehicles, in some instances, IMO, are better-designed and built than their own Acura counterparts, with the CR-V as one of the best examples. The best Acura product, IMO, is clearly the RL.....Honda, obviously, does not market a version of it in the U.S., but does so overseas.
I agree. You will notice, in my own auto reviews, that, in general, I have given Honda products some of my best opinions for overall vehicle quality. Honda-badged vehicles, in some instances, IMO, are better-designed and built than their own Acura counterparts, with the CR-V as one of the best examples. The best Acura product, IMO, is clearly the RL.....Honda, obviously, does not market a version of it in the U.S., but does so overseas.
Only reason they did so well is because they had lots full of small cars that were not selling well, and that are selling well in this climate. Just check Civic sales last year and this year.
08-27-08, 09:11 AM
#12
Guest
Posts: n/a
Was that article written by a Ridgeline owner? Honda hasn't stayed true to its roots, its basically a smaller Toyota with a S2000 and V-6s that get V-8 MPG.
They traded in the CRX, Del Sol, Prelude, Intergra for the CR-V, Element, Pilot, Ridgeline.
The Ridgeline is substantially bigger than the Highlander.
The article is acting like people still don't want V-8s. Hey they still sell. They brought us a 5 year old Fit and Honda fans jumped for it b/c its a Honda. The Saturn Astra, which is a very compelling package, sits on lots b/c its a Saturn.
Very poorly written article. No matter if gas is $1 or $5 a gallon, Acura not having a V-8 and Hyundai and Kia have one is just laughable.
They traded in the CRX, Del Sol, Prelude, Intergra for the CR-V, Element, Pilot, Ridgeline.
The Ridgeline is substantially bigger than the Highlander.
The article is acting like people still don't want V-8s. Hey they still sell. They brought us a 5 year old Fit and Honda fans jumped for it b/c its a Honda. The Saturn Astra, which is a very compelling package, sits on lots b/c its a Saturn.
Very poorly written article. No matter if gas is $1 or $5 a gallon, Acura not having a V-8 and Hyundai and Kia have one is just laughable.
08-27-08, 11:58 AM
#13
Pole Position
Honda is the small car specialist, yes, but I believe that their sales are *more* related to the fact that they build amazing cars. It's a very well run company.
