Honda has reported that its operating profit for the year, which ended in March, has dropped by 13% to 634 billion yen (RM25.7 billion), short of a consensus estimate of 669 billion yen (RM27.2 billion) profit drawn from 19 analysts. It is the automaker’s lowest operating profit in four years, Reuters reports.
In its financial results announced last week, it posted an operating loss of 5.2 billion yen (RM211 million) for the first three months of 2020, its first quarterly loss in four years, as a result of a 28% drop in vehicle sales.
The company said that the Covid-19 outbreak has cut operating profit by 130 billion yen. With the novel coronavirus still causing uncertainty in the market and global car demand, the automaker has refrained from releasing an earnings outlook for 2020.
“It is difficult to reasonably calculate the impact of Covid-19. We will release a forecast when we can,” executive VP Seiji Kuraishi said during a livestreamed press briefing last week.
Like other global automakers, the company is gradually resuming operations at vehicle plants, but all are hampered by weak demand as job losses and concern about a global economic downturn weigh on consumer spending. Automakers are also trying to get to grips with supply chain disruptions and social distancing measures that are expected to limit output in the coming months.
Honda isn’t the only Japanese automaker suffering from the effects of Covid-19. According to calculations by the news agency, combined annual sales at Japanese automakers fell 7.3% to a four-year low of 26.5 million vehicles, with Honda seeing an 8.5% decline.
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Honda profits drop. Will close honda shop soon for good. Service, quality are all not good. Give low specs in Malaysia. Price of servicing is also same as continental cars.
Certain national carmaker needed bailout too. During good or bad times, we gotta sapot P1.
Do you own a continental and have it serviced at the dealer? If u do u won’t be complaining about service fee.. If u don’t, which is obvious here, then u don’t know how much it costs to put up a comparison dude.
Bro, I owned my city 2019. But too many spoilt parts for my city 2019. And asking me to pay such very expensive parts with price also same as continental cars. Even also found it from people complaining in facebook
Very kesian all the Honda salesmen and salesgirl. This year surely no bonus. Or worst, they may loose their job due to very poor sale.
Their dire situation is expected becoz Honda has been in denial about its poor quality product, poor reliabilty and service for a very long time. What made it worst, are their jacked-up prices of kosong -spec Honda cars.
No one to comments about this? If another model like Proton maybe there will long list instead.
Because they have lost their interest in talking about honda.
Don understand y keep bashing honda..so far bought 3 gens of honda cars..no issue whatsover..fyi..servicing costs are not as high like contincars..plz do yr homework b4 commenting
How do you know that servicing cost are not as high like continental cars? Did you see the price for service charge increase recently.
YOU ARE SPOT ON….Bro..
Your last time servicing your car at Honda SC must be 10 years ago. The prices have increased across the range since then.