Honda Motor Co. announced its forecasts for the fiscal year ending March 31, 2012.
Left out of Honda’s previous fiscal report because of the uncertainty created by the March 11 earthquake, the 2011-2012 forecast predicts a 63% decrease in net income compared to the 2010-2011 results.
Honda forecasts a net income of 195.0 billion yen (US$2.4 billion) for the year ending March 31, 2012, compared to a net income of 534.0 billion yen (US$6.6 billion). Honda attributes the decline to an expected 6.0% drop in automobile sales as well as the cost of restoration and removal of damaged property and equipment.
Motorcycle sales however are expected to increase 10.5% to 12.6 million units compared to 11.4 million units from the previous fiscal year. Asia is again expected to contribute a large portion of the increase in sales but Honda is forecasting increased sales in all other regions including a 5% increase in unit sales for North America. Honda predicts sales to reach 195,000 in North America, compared to 185,000 in the year ended March 31, 2011 and 189,000 units the year before that.
Honda Reports Q4 2010-2011 Results