One of the world’s leading Japan based auto major, Honda Motor Co. has witnessed a dip in profits as per the annual results disclosed for the financial year 2011-12. The automaker that has been endeavoring to capture leading car segments with a highly streamlined new car launches has suffered a loss of over 60.4 percent in its net profits.
With a fall of net profits from $6.67 billion registered in the financial year 2010-11 to $2.63 billion recorded in the financial year 2011-12, the company has also suffered huge revenue loss of over 11 percent descending to $99.2 billion and the operational profits also declined steeply by 59.4 percent touching the $2.88 billion mark.
As per the company, the detrimental factors affecting the profits and revenue in the last fiscal were the unprecedented natural calamities that dismantled the whole of the Japan and the Thailand economy and the adversely unabated economic conditions persisting in the European countries. One another major factor was the unstable value of the Japanese currency Yen that surged in the last fiscal making the exports costlier thereby reducing the profits considerably.
Emerging from the critical situation, Honda Motor Co. is gearing towards achieving a threefold profit rise in the current fiscal owing to the exponentially increasing demands from economies in Asia and the US with the launch of new versions of its flagship models, Civic and Accord.
