Honda's net profit dives 77.2 per cent for fiscal 2008

Honda Motor CorporationTokyo - Honda Motor Co reported Tuesday its net profit plunged 77.2 per cent in fiscal 2008 that ended March 31, to 137 billion yen (1.4 billion dollars) as it suffered from the yen's surge and a sales decline caused by the global economic downturn. Japan's second-largest automaker saw operating profit nosedive 80.1 per cent to 189.6 billion yen because of sales declines, increased raw material costs and a stronger yen, the company said.

Sales for the year dropped 16.6 per cent to 10.01 trillion yen from the previous fiscal year.

Overall car sales fell 10.4 per cent in fiscal 2008 to 3.5 million units from the previous year. Overseas sales were down 10.5 per cent to 3 million units due mainly to sales drops in North America, while domestic sales were down by 9.6 per cent to 556,000 units.

For the current fiscal year that began April 1, Honda expected net profit of 40 billion yen, operating income of 10 billion yen and sales of 8.37 trillion yen. (dpa)

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