Reports show that Honda Motor Co. has raised its expectations for its annual profit figures despite its enormous fall last year. Clearly, Japanese car company’s latest figures exceed great expectations from the market, zoning in on various U.S. markets to meet these new figures.
During the last quarter of year 2010, Honda Motors Co. has reported a staggering 29 percent fall at only $1.5 billion. Its previous reported yearly earnings were somewhere around 177 billion yen with an average of about 110 billion yen. According to Reuters, the figures were studied by seven financial analysts.
Competitor Nissan Motor Co. ran past Honda Motors Co. The latter ranked as the third largest car company in Japan in 2010. Today, Honda raised its operations profit expectations from 500 billion yen to 620 billion yen in its March 31 time table. Thomson Reuters I/B/E/S’s team of analysts made a forecast that Honda would reap in profits of around 594 billion yen. Therefore, the car company raised their net profit forecasts from 500 billion yen to 530 billion yen.
Amazingly, Honda’s expected profits in the span of nine months have exceeded the figures outlook for an entire year.
Due to the price hike for raw materials and the end of financial support for eco-friendly brand models, it is expected that Japanese car companies would report a painful downfall in the figures of its last quarter profits. Despite these forecasts, these companies have already taken deliberate actions in terms of cost-cutting and efficiency in manufacturing process and activities to counter these incoming challenges in the automobile industry.