Friday, May 01, 2009

Honda Recorded Slim Profit in 2008-09 Fiscal Year

It is now the time of global economic recession and the situation is getting aggravated gradually. Global auto market has also suffered a lot because of economic slowdown as many car makers including General Motors and Chrysler are struggling for survival, while the companies like Toyota is facing operating losses. So, you can see how intense the condition is at this moment.

However, Honda Motors have somehow managed to avoid an operating annual loss for the financial year to March 2009, even though the company experienced $1.9 billion loss in its recently quarterly result. In fact, Honda saw 186.1 billion yen loss during the January-March quarter, compared to a year-earlier profit of 25.43 billion yet. However, overall, Honda recorded 137 billion yen yearly profit, a decline by 77 percent from the profit of the previous year.

Honda also suffered a lot due to economic slowdown. Falling sales and increasing inventories forced the automaker to cut its production. However, the Japanese automaker could see some success through its motorcycle and low-cost car lines. Moreover, the company’s aggressive pricing also helped it remain profitable.

Related article:

New York Times