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Tuesday, 27th October 2009
In Business In Japan,

Honda triple earnings forecast

Japanese car manufacturer Honda has almost tripled its estimates for its full-year earnings, it has announced.

Today (October 27th), the firm said that instead of the previously predicted 55 billion yen, it now expects to hit earnings of as much as 155 billion yen by the end of the current financial year.

Honda said that in the year ending March 2010, it expects to sell 3.4 million cars, which is a rise on the number predicted before.

The fragile Japanese economy is still emerging from its deepest recession since the Second World War and despite the positive news from Honda, the car manufacturer's performance is still much down on previous years.

Commenting on the figures, chief executive officer of Fukoku Captital Management Yuuki Sakurai told Bloomberg: "Honda's hybrid models have been selling well with the incentives. Whether or not real demand is picking up is still uncertain."

Fellow Japanese car manufacturers Toyota and Nissan are set to announce predictions for earnings next week.

All three firms have recently shown their latest green car models at the Tokyo Motor Show.

Written by Mark Smith.

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