The fiscal year that ended this past March 31st marked the 7th straight year of record sales. Even if revenue rose, 11.9% to a record $93.92 billion US, profits fell 2.0% to 7.22 billion US.
Usually, higher sales equal higher profits. Honda is faced with a future that will probably bring lower profits once again. Due to the anticipated end of the favourable yen exchange rates that have boosted earnings and increasing raw-material costs.
With the fiscal year, which began April 1, Honda expects its overall profits will tumble 9.6% to $6.52 billion. Net will drop 2.9% to $4.87 billion while revenues should increase by 6.0% to $99.53 billion, based solely on higher unit sales.
Honda also expects that sales will rise in North America by 2.9% to 1.84 million units. European sales should also increase over the next year. In short, event though operating costs are on the rise, Honda should survive.
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| 2007 Honda Civic |
Usually, higher sales equal higher profits. Honda is faced with a future that will probably bring lower profits once again. Due to the anticipated end of the favourable yen exchange rates that have boosted earnings and increasing raw-material costs.
With the fiscal year, which began April 1, Honda expects its overall profits will tumble 9.6% to $6.52 billion. Net will drop 2.9% to $4.87 billion while revenues should increase by 6.0% to $99.53 billion, based solely on higher unit sales.
Honda also expects that sales will rise in North America by 2.9% to 1.84 million units. European sales should also increase over the next year. In short, event though operating costs are on the rise, Honda should survive.