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Honda nearly triples outlook
Honda nearly triples outlook, more upside seen
Posted Tuesday, Oct 27, 2009, 2:39 pm in Employee News
Honda Motor surprised investors with a near tripling of its annual profit forecasts, bumping it further ahead of Japanese rivals thanks to a dominant motorcycle business and lineup heavy in small cars, Reuters reported.
But Honda, the world’s seventh-biggest carmaker, attributed the bulk of the revision to state-backed measures to stimulate sales and warned a real recovery in demand was still a ways off, the news service said. While rivals Toyota Motor Corp. and Nissan Motor Co. also are expected to report improved second-quarter earnings next week, Honda is seen making the most profit by far for the full year, helped by its more flexible operations and fewer exports from Japan, where the strong yen has raised costs, Reuters said.
Analysts said Honda’s outlook may yet be too conservative after it lowered its average dollar assumption to 85 yen from 90 yen for the second half of its financial year to March 2010, the article noted. A weaker dollar, which traded around 92 yen on Tuesday, crimps Honda’s earnings in yen terms, the story said. (Reuters)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
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