Honda announced on Tuesday that its net profits were hurt by currency rates, the costs of raw materials, and declining North American sales. It announced that there was an expectation of lower profits for the year.
OAS_AD(‘ArticleFlex_1′);According to reports released by Honda on Tuesday, its consolidated net income for its fiscal second quarter was $1.2 billion, a decrease of 40.9% from the same period in 2007. Honda reported total revenue of $27.3 billion, a 4.9% decline, for the July-to-September quarter.
On top of that, Honda also announced production cuts in the United Kingdom plants, although they said there were no plans that would involve any job loss. Honda has been making significant production cuts since the summer, when sales really began to dip. The car company is hoping for a respite from the falling bricks from the automotive industry, but it doesn’t look like there is going to be any of that any time soon.
So car companies like Honda and Toyota will need to get set to cope with the rushing problems of economic uncertainty. People aren’t buying cars, which impacts production and materials across the board. Some car companies have plans in place that allow them to cope better than others. Honda is hoping that it will be able to regulate its sales declines effectively and operate efficiently despite the downturn.
For more information on this situation, drop by your local Doylestown Honda dealer.