Business

Honda plans to triple its profit 2012-2013

TOKYO (Reuters) – On Friday Honda Motor reported that it planned for the year that has just begun operating profit increased almost three in favor of an expected surge in car sales in Asia and the continued market recovery in the United States.

For the 2012-2013 fiscal year, Honda expects an operating profit of 620 billion yen (5.8 billion) against 231.36 billion for the one that just ended.

This forecast is below analysts’ expectations, who see a figure of 645 billion yen, but remained optimistic for a reputable company to the prudence of these projections of results.

“The North American market is gradually picking up and we enter into new segments in Asia. We believe we will grow faster than the market,” said Tetsuo Iwamura, executive vice president of Honda.

Executive Vice President Tetsuo Iwamura told a news conference Honda now expects the overall U.S. market to grow to 14.3 million vehicles this year, up from hona forecast of 13.5 million made at the end of last year, and Honda aimed to recover a market share of more than 10 per cent as soon possible.

He added that Honda, whose sales of the new version of “crossover” CR-V increased by over 25% in the U.S. since the beginning of the year, wanted to join as soon as possible a share of over 10% of the U.S. market.

For the last quarter of 2011-2012, Honda has reported a jump of 142.3% of operating profit, the production of Japanese automaker is back to normal after the effects of the earthquake and tsunami that Japan hit the March 11, 2011.

Over the three months to March, operating income stood at 111.98 billion yen (1.05 billion euros), a figure lower than the 123.2 billion expected by analysts, on average, according to financial Thomson Reuters consensus I / B / E / S.

Net income, which includes the results released in China rose 60.7% to 71.59 billion yen.

Honda is a Japanese manufacturer that has suffered most from natural disasters in Asia in 2011.

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