S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68
S&P 500   3,901.36
DOW   31,261.90
QQQ   288.68

Japan's Honda sees profit slide on chips, material cost woes

Friday, May 13, 2022 | Yuri Kageyama, AP Business Writer


People walk near the logo of Honda Motor Company at a showroom Friday, May 13, 2022, in Tokyo. Honda’s fiscal fourth quarter profit slipped to almost half of what the Japanese automaker earned the previous year amid headwinds of supply shortages and rising raw material costs. (AP Photo/Eugene Hoshiko)

TOKYO (AP) — Honda’s fiscal fourth quarter profit slipped to almost half of what the Japanese automaker earned the previous year as it endured supply shortages and rising raw materials costs.

Tokyo-based Honda Motor Co. reported Friday that its profit was 124.8 billion yen ($967 million) in the January-March quarter, down 41% from 213.3 billion yen a year earlier. Quarterly sales edged 7% higher to 3.88 trillion yen ($30 billion).

Honda said it is cutting costs but acknowledged continuing uncertainty over supplies and production for various reasons, such as Chinese lockdowns to battle coronavirus outbreaks.

The semiconductor shortage has hurt sales, despite strong demand for Honda models, the company said. Honda was securing alternative suppliers, it said.

“I deeply apologize for the problems we have caused for those customers graciously waiting for our cars,” Honda Chief Financial Officer Kohei Takeuchi said from its headquarters.

In the fiscal year that ended in March, Honda posted a 707 billion yen ($5.5 billion) profit, up 7.6% from 657 billion yen the year before. Sales totaled 14.6 trillion yen ($113 billion) sales, up 10.5% on year.

Honda, which makes the Accord sedan, Odyssey minivan and Civic compact, sold about 4 million vehicles for the fiscal year, down from 4.5 million vehicles. Vehicle sales dropped in Japan, the U.S. and the rest of Asia.

Motorcycle sales for the fiscal year increased 12.5% to 17 million motorcycles, as sales grew especially in Asia.

Honda is projecting a profit of 710 billion yen ($5.5 billion) for the fiscal year through March 2023, little changed from the fiscal year that just ended, as risks from rising costs of raw materials continue.

The problems affecting Honda have hurt all automakers. But Japan’s top automaker Toyota wrapped up a year of record earnings even though its profit for the January-March quarter declined compared to last year. Nissan Motor Co. returned to profitability for the first time in three years.


Like the rest of the industry, Honda has grown bullish on electric vehicles. It recently announced an investment of 5 trillion yen ($39 billion) over the next decade in such research. That includes a collaboration with General Motors Co. in North America to develop models going on sale in 2024.

Honda said recent volatility in foreign exchange rates was unhelpful and it hoped for more stability.

The yen is at a two-decade low against the U.S. dollar. A cheap yen has historically worked as boon for exporters like Honda by boosting the value of their overseas earnings when converted into yen. But it also increases costs for imported components and materials.

The potential impact on the global economy from the war in Ukraine also could hurt Honda's sales, Takeuchi said.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama


7 Stocks That are Ready For a Santa Claus Rally

With the end of the year approaching, many investors are looking to rebalance their portfolios. That typically means casting a critical eye at some of your strong performers and making a decision on whether they will move higher. And one thing that can dip the balance in favor of retaining a stock is the likelihood of a Santa Claus rally.

The technical definition of a Santa Claus rally is a rally that starts in the last few trading days of the year after the Christmas holiday. In recent years, however, that definition has been expanded to take into account a December rally. And with Black Friday beginning earlier and earlier and really not ending until after the holiday's end, this makes some sense.

So will there be a rally in 2021? I wouldn’t bet against it. The market continues to want to move higher and January is historically a strong month for stocks. With that said, we believe quality should still matter. Here are seven stocks that stand to benefit with or without a Santa Claus rally.

View the "7 Stocks That are Ready For a Santa Claus Rally".


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Toyota Motor (TM)
2.7665 of 5 stars
$158.66+1.8%2.35%8.66Buy$178.00
General Motors (GM)
3.1583 of 5 stars
$35.40-2.0%N/A5.87Buy$62.42
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.