Honda reports record 1st-quarter profit

[steinravnik]

Honda reports record 1st-quarter profit



TOKYO — Honda Motor Co. reported record profit for a fiscal first quarter today as sales growth in new markets offset the damage from a stronger yen and soaring material costs.

Honda, Japan’s No. 2 automaker, earned a better-than-expected $1.68 billion in the April-June quarter, up 8.1% from the same period the previous year. Analysts surveyed by Thomson Financial had forecast $1.2 billion in quarterly profit.

Sales for the quarter dipped 2.2% from a year ago to $26.79 billion, largely because the rising yen eroded the value of overseas earnings. If the yen’s value had held at levels of a year ago, sales would have jumped about 7%, Honda said.

Riding on its reputation for making cars with good mileage, the Tokyo-based manufacturer of the Civic and Accord compacts has racked up solid results despite worries among the world’s automakers about a U.S. slowdown and rising steel prices.

Honda sold more vehicles worldwide than in any other fiscal first quarter at 962,000 vehicles, up 1.7% on year.

Cost-cutting, the decrease of auto discounts in North America and a lift from equity-related income from Chinese affiliates added to a strong performance, according to Honda.

Demand for Honda products is booming in Asia, Brazil and other new markets, making up for declines in vehicle sales in the U.S., Europe and Japan, it said.
Honda was the only automaker to record better U.S. sales in June compared with a year ago, while others saw sales plummet in the worst June for the industry in 17 years.

http://www.freep.com/apps/pbcs.dll/a.../80725014/1014

[EldoFan]

Why is this news?? The only good thing I see in that article is the part about the 'rising yen'..... Otherwise it's just more of the same.....

[throwback]

Profits Rick, it's all about profits.

Sales for the quarter dipped 2.2% from a year ago to $26.79 billion
Honda, Japan’s No. 2 automaker, earned a better-than-expected $1.68 billion in the April-June quarter, up 8.1% from the same period the previous year.

Less sales but more profits, there is a message here Rick.

[Ambalanche]

I honestly think that if GM can just hold on until 2010 when the Labor contracts benefits actually go into effect GM and Ford will be in a much better place financially.

[Minnesota Nice]

The cost-cutting definitely shows in my Civic. It's a rattle-trap and had more build related issues than all three of my heavily used domestic cars of the past combined.

[eurohazard]

Originally Posted by Minnesota Nice

The cost-cutting definitely shows in my Civic. It's a rattle-trap and had more build related issues than all three of my heavily used domestic cars of the past combined.

I always wondered how Honda could have made the current generation Civic. And please do not take offense...I'm not hating you or your car.

But my 1996 Civic had a simple, clean, and completely rattle free dash (as was the rest of the car). Why did Honda make a such a drastic move away from the basics?

[steinravnik]

Originally Posted by eurohazard

I always wondered how Honda could have made the current generation Civic. And please do not take offense...I'm not hating you or your car.

But my 1996 Civic had a simple, clean, and completely rattle free dash (as was the rest of the car). Why did Honda make a such a drastic move away from the basics?

I've always thought the 1992-1995 generation was the best. Seems like they hit a peak there.



Clean, simple lines, yet sporty. The two models after that have always looked too bland and boring. The current model looks good in coupe form, but the dash is a little wierd for my tastes.

[tgagneguam]

Originally Posted by Minnesota Nice

The cost-cutting definitely shows in my Civic. It's a rattle-trap and had more build related issues than all three of my heavily used domestic cars of the past combined.

A useful perspective, Minnesota Nice. I rather fancy the lines of the current Civic, especially the Si Coupe, though I'd definitely be put off if I had to tolerate poor build quality, especially in today's ultra-competitive auto market. I wonder if this is the exception or the rule for the latest generation Civic?

[Ttple]

Uh-oh, it looks like GM should hurry up on the brand images.

[Minnesota Nice]

Originally Posted by eurohazard

I always wondered how Honda could have made the current generation Civic. And please do not take offense...I'm not hating you or your car.

But my 1996 Civic had a simple, clean, and completely rattle free dash (as was the rest of the car). Why did Honda make a such a drastic move away from the basics?

No offense taken at all. I value all respectful insight. The thing about the Civic...love it or hate it...is that it is well executed. The lines are tight, the creases are well placed, and the execution appears to be only the highest quality. Admittingly, even the plastics inside look fantastic in terms of quality and fitment.

But here's the thing. My theory is that Honda spent so much money making the new Civic a much more expensive looking car...a huge reversal from what it was, that they had to cut a lot of corners to make up for it. I have never, in my life, had a car that rattled, ticked, popped, or was afflicted with so many questionable build quality related issues.

And it truly is sad, because any true car enthusiast would love whipping that little car into a corner. It truly is an utter blast to drive, and I personally think, in my Fiji Blue color, that there are very few sexier sport compacts on the road.

Originally Posted by tgagneguam

A useful perspective, Minnesota Nice. I rather fancy the lines of the current Civic, especially the Si Coupe, though I'd definitely be put off if I had to tolerate poor build quality, especially in today's ultra-competitive auto market. I wonder if this is the exception or the rule for the latest generation Civic?

Thanks for the kind words. The lines on the Civic (especially the Si) are very well done, as I mentioned above. They did an amazing job turning a relatively boring, uninspiring compact into a sleek, controversial (which sells), expensive looking car.

Sadly, I feel that came at the sacrifice to build quality, as I see so many posts daily about the same problems from different people...to the point where it's more than just random problem: every car has issues, but I've never seen the amount of people having the same problems to this degree as I have with my Civic Si, and it's sad.

I have many friends who have no problems with their Si's. But I also have many who have just as many as me (and that's a lot, trust me). As sexy as the car is (and my ego doesn't want to let it go), I would not consider another one unless I knew definitively that Honda tightened the car up.

[Johnny P]

Guys, build quality of the current Civic is just fine. It's on par with past designs and better than the '01-05 generation. Apart from the early '06 models we see very little warranty problems. There is little to no chatter on Honda's site about problems post '06.

I don't really like the current Civic, but it's a good car with excellent economy.

[Stéphane Dumas]

Originally Posted by Johnny P

Guys, build quality of the current Civic is just fine. It's on par with past designs and better than the '01-05 generation. Apart from the early '06 models we see very little warranty problems. There is little to no chatter on Honda's site about problems post '06.

I don't really like the current Civic, but it's a good car with excellent economy.

I guess they fixed some glitches of the Civic and could it be the turn of the Accord to face the musi
http://www.truedelta.com/blog/?p=242

This can happen with any manufacturer. Most recently I heard of it with Honda concerning a 2008 Accord. That owner can no longer discuss the issue. But he supplied some information months before the settlement. Putting the pieces together, his Accord has a problem with the variable cylinder management and/or active noise cancellation that could not be fixed. The symptom was an irritating low frequency noise. So Honda bought the car back, and had him agree to saying nothing else about the car to anyone.

Maybe I imagine too much things, but I'm tempted to said it's a kind of "omertà" http://en.wikipedia.org/wiki/Omert%C3%A0