LexFather

http://www.leftlanenews.com/honda-se...-15-years.html

Honda sees first quarterly loss in 15 years
Drew Johnson

Honda, Japan’s second largest automaker, reported its first quarterly loss in 15 years for the fourth quarter ending March 31st. Despite the loss, Honda still reported yearly profits and expects its operations to stay in the black throughout 2009.

For the fourth quarter ending March 31st, Honda reported an operating loss of $2.91 billion. During the same period last year, Honda posted a $1.74 billion profit.

Honda attributes the fourth quarter loss to collapsing global sales. Honda’s global sales fell more than 35 percent in the fourth quarter, totaling just 680,000 units. Sales fell even harder in the United States – Honda’s largest market – with Honda’s sales plummeting more than 50 percent to 219,000 units. During the fourth quarter last year, Honda sold 459,000 vehicles in the U.S.

Despite falling sales across the globe, Honda still managed to post a profit for the fiscal year ending March 31st – albeit well of the pace from last year’s figures. For the year, Honda’s net profit plunged 77.2 percent to $1.41 billion.

Honda expects more of the same from the fiscal year starting April 1st, but is optimistic the company will be able to stay in the black. Honda foresees 2009’s net profits dropping another 70.8 percent, totaling $411 million. Honda has not posted a full-year loss since its inception in 1948, according to Automotive News.

Although the results are not ideal for Honda, the company is faring better than most other automakers. General Motors and Chrysler are fighting for their survival with Toyota expected to announce massive losses in just a few days

pagemaster

That really sucks that Toyota is about to report massive losses in the next few days. I really believe Toyota is suffering from the investment in the Tundra. The plant in Texas is reported to be able to produce 300,000+ units. Toyota can't sell more than 100,000 right now. Also, development of a Tundra/Sequoia diesel and 3/4 ton truck is also eating at the profits.

Toyota also is not operating the Indiana plant to near capacity. With the slow sales of the Sequoia and Toyota abandoning Tundra production in Indiana the plant is sitting partially idle.

I think the current Tundra was a bad investment. Way too much capacity.

FKL

vw also just slid to red. It's rough out there.

wmb0000

I believe every car manufactures are hurting now. Sad state indeed.

Och

iTrader: (3)

Its time for the crappiest manufacturers to die off. They are spoiling the game for everyone else with excess of dirt cheap yet crappy products. If Acura and Chrylser went away, the car industry would rebound right there and then.

SLegacy99

Agreed. Gas prices have been on the rise for quite some time now.

I8ABMR

No surprise here. I just hope this will lead to better pricing and deals for consumers. My fear in the end is that all of this budget tightening is going to have the automakers cutting corners in production for cars in the near future

ivanz

Toyota also recently opened a plant in Ontario to manufacture RAV4s, and it is running way below capacity as well.

wmb0000

Acura? You do know that Acura is Honda correct? This would be the first time I heard that Honda is one of the crappiest manufacturer with dirt cheap yet crappy products. Am I missing something

jimxo

There seems to be so much concern for these company's. Who gives a crap? Stop feeling sorry for them, they made Billions of dollars over the years and one down year is not going to put them out of business.

I think consumers may catch a break and prices may stop increasing after years of charging what they want.

rogers2

jimxo I totally agree. To be honest I really don't see how these car manufactures didn't see this coming. 1st quarterly loss posted in 15 years. Ok keep it moving, i'm sure you have 15 years of money saved.