Honda Motors Registers 22.3% decline in Profits
The company posted a net profit of $1.03 billion (124.1 billion yen) for the quarter, which is 18.5 percent less than the last year for the corresponding time. The operating profit was 163.0 billion yen, 22.3% less than 210 billion yen, which was the profit for the same period last year.
Honda has recorded a 22.3% fall in operating profits for the third quarter of the financial year 2015-16. The decline is caused by the escalated quality costs and recalls that resulted from airbag defects. Fluctuating value of the Indian rupee against dollar also had an impact over the gains of the third largest carmaker of Japan.
The company posted a net profit of $1.03 billion (124.1 billion yen) for the quarter, which is 18.5 percent less than the last year for the corresponding time. The operating profit was 163 billion yen, 22.3% less than 210 billion yen, which was the profit for the same period last year.
Last year, Honda had recalled more than two lac cars in the month of September after it discovered a fault in the airbag inflators. The recall included cars like Honda City (2007-2012), Honda Civic (2003-2012) and Honda CR-V (2004-2011). Most of the cars recalled were Honda Citys, which accounted for approximately 1.4 lac units from 2,23,578 cars.
The Japanese automaker is all set to dazzle the automobile enthusiasts at the upcoming 2016 Auto Expo. Its lineup include cars like BR-V and Accord. Honda launched the BR-V in Thailand today, where it was made available in two layouts viz. 5-seater and 7-seater variants. The petrol version of the car comes with an optional automatic transmission while the 5-speed manual comes as standard.
Also Read: Honda City Sedan And Mobilio MPV Recalled by HCIL