Honda reported a 88.3% year-on-year decrease in net profit over its first quarter ended June 30, 2011, thanks in large part to the March 11 earthquake and ensuing tsunamis in Japan.
Honda reported a profit of 31.7 billion yen (US$411.1 million) over the quarter, a fraction of the 272.4 billion yen (US$3.53 billion) reported over the same quarter last year. The decrease came mainly from a large dropoff in automobile sales.
Net sales from the motorcycle division helped keep Honda in the black despite a drop in unit sales. Honda reported a net income of 44.9 billion yen (US$582.4 million), a 43.5% increase from the net sales of 31.3 billion yen (US$406.1 million) from the same period last year. Unit sales were down 4.7% to 2.75 million units from 2.89 million units, but Honda was able to increase profits thanks to changes in its product offerings.
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