Honda sees growing FY profits as US sales recover

TOKYO, April 28 (BestGrowthStock) – Honda Motor Co (7267.T: ),
Japan’s No.2 automaker, forecast a 10 percent rise in annual
operating profit as demand in its biggest and most profitable
U.S. market recovers from a multi-decade low.

Honda, also the world’s top motorcycle maker, is well
positioned to gain from a steady rise in U.S. sales with its
fleet of fuel-efficient models, which will see the addition of
the CR-Z sporty hybrid in North America in a few months.

For the year to end-March 2011, the maker of the Civic and
Accord models forecast an operating profit of 400 billion yen
($4.30 billion), up from the 363.8 billion yen it made last
year. It expects net profit to grow 27 percent to 340 billion
yen.

Operating profit for the January-March quarter just ended
was 96.1 billion yen, compared with a loss of 272.1 billion yen
a year earlier, when it cut back production to reduce
inventory.

The result was slightly higher than the 94 billion yen
average estimate in a poll of 19 brokers according to Thomson
Reuters I/B/E/S.

Fourth-quarter net profit came to 72.2 billion yen versus a
loss of 180 billion yen a year ago.

Shares in Honda have gained 6.4 percent in the year to
date, outperforming a 1.2 percent rise in Tokyo’s transport
sector subindex (.ITEQP.T: ).

Stock Basics

($1=93.09 Yen)
(Reporting by Chang-Ran Kim, Editing by Ian Geoghegan)

Honda sees growing FY profits as US sales recover