Japanese automaker Honda reported Wednesday that it sank into the purple for the April-June quarter, as its gross sales plunged because of the coronavirus pandemic, particularly within the U.S., Japan and India.
Honda Motor Co. racked up an 80.Eight billion yen ($765 million) fiscal first quarter loss, a reversal from a 172 billion yen revenue within the earlier fiscal 12 months.
Govt Vice President Seiji Kuraishi informed reporters gross sales and income had been anticipated to rebound.
“In fact, uncertainties stay in regards to the coronavirus, however a lot of the damaging impression was attributable to the difficulties in manufacturing and gross sales that got here from a lockdown,” he stated.
The disaster has reaffirmed the necessity for Honda to reshape its operations by beefing up on-line gross sales and rising leaner, he stated.
Tokyo-based Honda’s quarterly gross sales dropped 47% to 2.1 trillion yen ($20 billion), based on the producer of the Accord sedan, Readability gasoline cell, Asimo robotic and Odyssey minivan.
Automakers have been hit onerous by the pandemic. Detroit-based General Motors Co. firm misplaced $806 million from April via June, because it closed its vegetation for 2 months.
Nissan Motor Co., already reeling from a scandal surrounding its former government Carlos Ghosn, racked up a 285.6 billion yen ($2.7 billion) loss and has introduced plant closures in Spain and Indonesia.
Toyota Motor Corp. stories outcomes on Thursday.
Honda stated it’s projecting a 165 billion yen ($1.6 billion) revenue for the fiscal 12 months via March 2021, down 64% from a 12 months earlier.
However the firm acknowledged the scenario stays unsure, as outbreaks of the virus intensify in some areas, together with Indonesia and Japan.
Honda managed to keep up an working revenue within the final quarter for its motorbike division, an essential a part of its enterprise. That wasn’t sufficient to offset general losses for the quarter, the corporate stated.
It expects to promote 4.5 million autos within the present fiscal 12 months, down from 4.79 million autos within the fiscal 12 months that led to March.
Honda officers stated China remained an essential marketplace for the automaker. Latest information present the Chinese language auto market is already beginning to get better. That is excellent news for Japanese automakers, together with Honda.
Yuri Kageyama is on Twitter at https://twitter.com/yurikageyama