TOKYO (AP) — Honda reported a loss for January-March Wednesday, despite growing sales, as an unfavorable exchange rate, income tax expenses and other costs hurt results.
Visitors examine a car displayed at the showroom at the Honda Motor Co. headquarters in Tokyo, Wednesday, May 8, 2019. Honda reported a loss for January-March, despite growing sales, as an unfavorable exchange rate, income tax expenses and other costs hurt results. (AP Photo/Koji Sasahara)
Honda Motor Co. reported a 13 billion yen ($118 million) loss for the fiscal fourth quarter, a reversal from a 107.7 billion yen profit the previous fiscal year.
Quarterly sales rose 3% to 4.05 trillion yen ($37 billion).
For the fiscal year through March, Honda recorded a 610.3 billion yen ($5.5 billion) profit, down 42% on year because of an absence of a U.S. tax break, which boosted earnings the previous year.
Chief Executive Takahiro Hachigo announced Honda will streamline its product offerings, consolidating model variations, and increase parts-sharing to cut costs, with the first model developed under the new “architecture” launching next year.
Inter-regional cooperation will reduce manpower needs by a third, which will instead be used for research and development, he said.
In North America, a critical market for the Japanese automakers, Honda will reduce model options to realize growth, he added.
For the fiscal year through March 2020, Honda expects a 665 billion yen ($6 billion) profit, up 9 percent.