Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Tokyo  >  Nissan Motor Co Ltd    7201   JP3672400003

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Honda sees bumper year as it leaves disasters behind

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/27/2012 | 12:36pm CET

Honda Motor Co (>> Honda Motor) forecast a near-tripling of operating profit in the year ahead on surging Asian sales and a recovery in the United States, marking an emphatic rebound from a 2011 hammered by the yen's record strength and natural disasters.

Honda Motor Co (>> Honda Motor) forecast a near-tripling of operating profit in the year ahead on surging Asian sales and a recovery in the United States, marking an emphatic rebound from a 2011 hammered by the yen's record strength and natural disasters.

Japan's No.3 automaker is expected to ride faster-than-expected growth in demand in the United States, its biggest and most profitable market, where sales of the remodeled CR-V crossover have jumped by more than a quarter so far this year.

For the year to next March, Honda forecast an operating profit of 620 billion yen ($7.7 billion), up from 231.36 billion yen in the financial year just ended. The forecast was slightly behind analysts' consensus for 645 billion yen, but bullish nonetheless for a company noted for its conservative earnings guidance.

"It's a pretty positive forecast, but they were the worst hit automaker by the tsunami and the Thai floods, so they should be returning or have returned to normal production," said Fujio Ando, senior managing director at Chibagin Asset Management.

Executive Vice President Tetsuo Iwamura told a news conference Honda now expects the overall U.S. market to grow to 14.3 million vehicles this year, up from a forecast of 13.5 million made at the end of last year, and Honda aimed to recover a market share of more than 10 percent as soon possible.

"The North American market is slowly recovering, while we're entering new segments in Asia," he said. "We're expecting to grow faster than the overall market."

Honda, which has lagged a recovery from the effects of disasters in Japan and Thailand by rivals Toyota Motor Corp (>> Toyota Motor Corp.) and Nissan Motor Co (>> Nissan Motor), more than doubled its fiscal fourth-quarter operating profit, ending five straight quarters of year-on-year decline.

January-March operating profit jumped to 111.98 billion yen ($1.4 billion), but slightly lagged an average estimate of 123.2 billion yen in a survey of 23 analysts by Thomson Reuters I/B/E/S. Net profit, which includes earnings made in China, rose 60.7 percent to 71.59 billion yen.

Honda set its dollar rate assumption for the business year at 80 yen and the euro at 105 yen, predicting neutral impact on profits from currencies this year.

Honda was the last Japanese car maker to get its supply chain in order after a massive earthquake and tsunami in March 2011, and only re-started work at its Thai car plant at the end of last month following October's floods.

ROBUST SALES FORECASTS

Giving robust sales guidance, Honda forecast its global car sales would jump 38.4 percent to 4.3 million vehicles and its motorcycle sales would increase 10.2 percent to 16.6 million in 2012/13.

It sees sales in North America rising 31.5 percent to 1.74 million vehicles, sales in Japan climbing 20.7 percent to 710,000 and the rest of Asia by 56.5 percent to 1.31 million.

Honda will make minor changes later this year to the year-old Civic after the latest version of the perennially popular model was panned by critics, raising deeper concerns over whether the automaker was slipping in a battlefield made tougher by products from Hyundai Motor Co (>> Hyundai Motor Co) and resurgent U.S. rivals Ford Motor Co (>> Ford Motor Company) and General Motors Co (>> General Motors Company).

"The biggest challenge we see in the year ahead is the intensifying competition in all markets," said Executive Vice President Iwamura. He added that Honda would pour its energy into beefing up its products in the small-car segments to compete better in emerging markets.

Honda CEO Takanobu Ito has conceded that the company he took over in mid-2009 may have let down its guard during the previous decade of rapid expansion, while pulling back on vehicle development too much after the global financial crisis.

Its shares have risen 5.6 percent in the past three months, lagging gains of around 14 percent by both Toyota and Nissan.

Honda is under intense scrutiny to redeem itself with U.S. consumers this fall with the next version of the Accord, which will be the first major model to carry a new generation of engines and transmissions that it hopes will make its future cars the most fuel-efficient in their categories.

Also on Friday, Mazda Motor Corp (>> Mazda Motor Corp.) reported a 38.72 billion yen operating loss for the year ended in March, against a profit of 23.84 billion yen in 2010/11. Japan's fifth-largest automaker is heavily exposed to the strong yen, exporting 77 percent of its domestic output.

Toyota will report on May 9 and Nissan on May 11.

(Additional reporting by Sophie Knight; Editing by Alex Richardson)

By Chang-Ran Kim

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NISSAN MOTOR CO LTD
02:40p NISSAN MOTOR : California man injured in Russell County wreck
01:35p NISSAN MOTOR : to harness internal ingenuity with new innovation awards
01/23 NISSAN NOT TO REVIEW OUTPUT DESPITE : Ceo
01/23 NISSAN MOTOR : Test Drive Nissan Rogue SL AWD 2017 tecnología al máximo
01/23 NISSAN MOTOR : to review car plant after Brexit
01/23 NISSAN MOTOR : 'Northern powerhouse' to get £556m boost amid warnings of east-we..
01/23 NISSAN MOTOR : Dh2b of prizes won at DSF over two decades
01/23 NISSAN MOTOR : Kyodo Top12 News
01/23 NISSAN MOTOR : Mazda set to gain more market share in Thailand
01/22 NISSAN MOTOR : Over AED2bn of prizes won at Dubai Shopping Festival over two dec..
More news
Sector news : Auto & Truck Manufacturers - NEC
06:07p Toyota Motor to add 400 jobs at Indiana assembly plant
05:43pDJTrump Criticizes Environmental Regulations -- Update
04:28pDJFORD MOTOR : Taps Apple Executive as New Branding Chief
12:57pDJToday's Top Supply Chain and Logistics News From WSJ
08:48aDJFORD MOTOR : Invests to Promote Online Auto Loans -- WSJ
More sector news : Auto & Truck Manufacturers - NEC
News from SeekingAlpha
01:35p EV intrigue after large electric car parts order cancelled
01/17 IN 2016, PUBLICITY-SHY INFINITI OUTS : 1
01/15 2016 STATISTICAL ANALYSIS OF THE PIC : GM Vs. Ford Vs. FCA Vs. Toyota Vs. ...
01/13 AUTO INDUSTRY AT CES AND DETROIT SHO : The Great And The Insane
01/13 EPA locks in tough fuel efficiency rules
Advertisement
Financials ( JPY)
Sales 2017 11 587 109 M
EBIT 2017 700 000 M
Net income 2017 563 966 M
Debt 2017 6 102 398 M
Yield 2017 4,24%
P/E ratio 2017 8,07
P/E ratio 2018 7,08
EV / Sales 2017 0,94x
EV / Sales 2018 0,88x
Capitalization 4 790 512 M
More Financials
Chart NISSAN MOTOR CO LTD
Duration : Period :
Nissan Motor Co Ltd Technical Analysis Chart | 7201 | JP3672400003 | 4-Traders
Full-screen chart
Technical analysis trends NISSAN MOTOR CO LTD
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 1 372  JPY
Spread / Average Target 21%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Carlos Ghosn Chairman, President & Co-Chief Executive Officer
Hiroto Saikawa Vice Chairman & Co-Chief Executive Officer
Trevor Mann Chief Operating Officer
Joseph G. Peter CFO, Head-Investor Relations & Accounting
Celso Guiotoko Chief Information Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
NISSAN MOTOR CO LTD-4.70%42 324
TOYOTA MOTOR CORP-2.72%192 863
VOLKSWAGEN AG9.79%82 644
DAIMLER AG-0.11%80 621
BAYERISCHE MOTOREN WER..-2.57%59 946
GENERAL MOTORS COMPANY5.20%55 867
More Results