Honda Motor Co said yesterday that its net profit dived 89 percent in the fiscal third quarter as demand for cars slumped.
The company also slashed its annual earnings forecast by more than half.
Japan’s second-largest automaker logged a net profit of ¥20.24 billion (US$226 million) for the three months ending December, down from ¥200.01 billion in the same period a year earlier.
Operating profit tumbled 62.3 percent to ¥102.45 billion as revenue slumped 16.8 percent to ¥2.53 trillion because of weak car sales and the impact of a stronger yen, which eroded export earnings.
Honda reported a 5.1 percent drop in automobile sales in the quarter to 940,000 units.
The group cut its net profit forecast to ¥80 billion for the year to March 2009, down from an earlier forecast of ¥185 billion. That would mark a decline of 86.7 percent from the previous year.
Operating profit is expected to drop 85.3 percent to ¥140 billion as revenue declines 15.9 percent to ¥10.1 trillion.
Japanese automakers have been slashing output and laying off workers to cope with the global economic crisis, which has sent demand for cars plunging as consumers tighten their belts in recession-hit major economies.
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