Executive Briefings

First the Tsunami, Now the Floods in Thailand Disrupt Supply - and Profit - at Honda

Honda's quarterly profit tumbled 56 percent, battered by the strong yen and production disruptions from the March tsunami disaster that are likely to be compounded by flooding in Thailand.

The automaker, which makes the Accord sedan and Odyssey minivan, said net profit for the July-September fiscal second quarter fell to $788m. Quarterly sales sank 16.3 percent from a year earlier to $24.6 billion, with sales in North America falling the most - 22.3 percent.

Honda Motor Co. said flooding in Thailand, where the automaker has parts suppliers and assembly lines, made it too difficult to forecast earnings for the full fiscal year through March 2012. Japanese automakers in particular use Thailand as a production base in Southeast Asia.

Source: Yahoo News

Honda's quarterly profit tumbled 56 percent, battered by the strong yen and production disruptions from the March tsunami disaster that are likely to be compounded by flooding in Thailand.

The automaker, which makes the Accord sedan and Odyssey minivan, said net profit for the July-September fiscal second quarter fell to $788m. Quarterly sales sank 16.3 percent from a year earlier to $24.6 billion, with sales in North America falling the most - 22.3 percent.

Honda Motor Co. said flooding in Thailand, where the automaker has parts suppliers and assembly lines, made it too difficult to forecast earnings for the full fiscal year through March 2012. Japanese automakers in particular use Thailand as a production base in Southeast Asia.

Source: Yahoo News