Honda Motors loses $1.9 billion in Q4, ends FY 2008-09 with a profit

Honda Motor, Japan's second-largest automaker, reported a net loss of   $1.9-billion in the fourth quarter but booked profit for the year ended March 2009, while projecting profit for the current fiscal year.

In the January-March quarter, Honda posted a net loss of 186.1 billion yen ($1.9 billion), against a profit of 25.43 billion yen for the same period last year.

Honda's group net profit of 137 billion yen for the fiscal year 2008-09 was down 77.2 per cent from a year earlier, but better than its January net profit forecast of 80 billion yen.

Honda's quarterly sales dropped 42 per cent to 1.78 trillion yen from 3.06 trillion a year earlier while for the whole year, sales dropped 17 per cent to 10.01 trillion yen.

Its operating profit also tumbled 80.1 per cent to 189.64 billion yen, down 16.6 per cent from a year earlier, first drop in nine years.

The company had forecasted in December net income of 185 billion yen ($2.08 billion) for the year ending 31 March compared to its earlier forecast of 485 billion yen. (See: Honda may report first half-year loss in 11 years)