Japan’s No.2 automaker, Honda, posted an 88 percent fall in operating profit as car sales fell, but beat analyst expectations for a loss raising its forecast for the fiscal year as it predicts sales to improve. Honda made an operating profit of 25.2 billion yen ($267 million) in the April-June quarter, compared to a profit of 210.5 billion yen in 2008.
It made a net 7.6 billion yen in the first quarter compared with a profit of 173.4 billion yen a year ago.
Honda says that it expects an operating profit of 70 billion yen and a net profit of 55 billion yen for the fiscal year ending March 31, 2010. It said that it expects earnings and sales to improve in the coming quarters and expects production volume to return from the low levels since last year.
– By: Omar Rana