{"id":147412,"date":"2020-05-12T10:24:48","date_gmt":"2020-05-12T14:24:48","guid":{"rendered":"https:\/\/www.thedetroitbureau.com\/?p=147412"},"modified":"2020-05-12T10:24:48","modified_gmt":"2020-05-12T14:24:48","slug":"honda-earnings-suffer-due-to-pandemic-toyota-predicts-80-drop","status":"publish","type":"post","link":"https:\/\/thedetroitbureau.com\/2020\/05\/honda-earnings-suffer-due-to-pandemic-toyota-predicts-80-drop\/","title":{"rendered":"Honda Earnings Suffer Due to Pandemic; Toyota Predicts 80% Drop"},"content":{"rendered":"
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Akio Toyota, Toyota’s chairman, warned the company could see profits drop as much as 80% due to the impact of COVID-19.<\/figcaption><\/figure>\n

Honda Motor Co. on Tuesday became the latest automaker to post disappointing quarterly and annual financial results while Toyota Motor Co.\u2019s top executive warned the company could see profits drop as much as 80% for the year.<\/p>\n

in Honda\u2019s case for fiscal year 2019, the Japanese automaker reported its lowest operating profit in four years, \u00a5633.6 billion, or $5.9 billion, on revenue of \u00a514.9 trillion. Operating profits and revenue dropped 12.8% and 6%, respectively. Group net profit fell 25.3% to \u00a5455.75 billion, or $4.2 billion.<\/p>\n

The biggest driver of the decline was the COVID-19 affected fourth quarter. Honda saw a 28% drop in fourth-quarter vehicle sales, which resulted in the automaker reporting an operating loss of \u00a55.2 billion yen, its first quarterly loss since the March 2016 quarter. It\u2019s a drop of \u00a547.9 billion year over year, the company reported.<\/p>\n

<\/p>\n

(Honda reveals plans for restarting North American plants.)<\/strong><\/span><\/em><\/a><\/p>\n

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Honda EVP Seiji Kuraishi said it was difficult to quantify the impact the pandemic had on the company’s earnings for 2019.<\/figcaption><\/figure>\n

\u201cIt is difficult to reasonably calculate the impact of COVID-19,\u201d Executive Vice President Seiji Kuraishi said during a livestreamed press conference to announce the results.<\/p>\n

Conversely, Akio Toyoda, Toyota\u2019s top official, had no problem offering up some insight \u2013 albeit no hard numbers yet \u2013\u00a0on the impact the pandemic has had on Japan\u2019s top automaker.<\/p>\n

\u201cThe coronavirus has dealt us a bigger shock than the 2008 global financial crisis,\u201d\u00a0he said during a livestreamed press conference. During that event, he speculated that the company expects profit to drop by 80% to its lowest in nine years.<\/p>\n

(Toyota cutting NA production by a third through October.)<\/strong><\/span><\/em><\/a><\/p>\n

Toyota expects to see a massive \u00a51.5 trillion, or $13.9 billion, drop in profits due to the decline in vehicle sales around the world due to the coronavirus. However, officials did say Toyota \u2013 typically one of the world\u2019s most profitable automakers \u2013 will make a small operating profit of \u00a5500 billion for its fiscal year which also ended March 31.<\/p>\n

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Honda has already begun to restart many of its manufacturing operations around the globe.<\/figcaption><\/figure>\n

\u201cWe anticipate a big drop in sales volumes, but despite that we are expecting to remain in the black. We hope to become a leader of the country\u2019s economic recovery,\u201d Toyoda said, offering a bit of a glimpse into what automakers are expecting for the year.<\/p>\n

The company predicted its global sales for 2020 would come in at 8.9 million vehicles, which would be its lowest in nine years, compared with the 10.46 million vehicles it sold for fiscal year 2019. He did suggest that 2021 would see sales similar to 2019\u2019s results.<\/p>\n

(Toyota reveals \u201cflexible\u201d plan aimed at safely starting to re-open U.S. plants.)<\/a><\/strong><\/em><\/span><\/p>\n

Conversely, Honda\u2019s EVP Kuraishi was a bit more conservative, offering only, \u201cWe will release a forecast when we can.\u201d He\u2019s not alone, most other automakers who have offered up earnings results, have spoken only in generalities, that sales will be down significantly in 2020 with a rebound in 2021. Honda sold 4.79 million vehicles worldwide \u2013 not counting motorcycles \u2013 which was a drop of 10 percent.<\/p>\n","protected":false},"excerpt":{"rendered":"

Honda Motor Co. on Tuesday became the latest automaker to post disappointing quarterly and annual financial results while Toyota Motor Co.\u2019s top executive warned the company could see profits drop as much as 80% for the year, reports TheDetroitBureau.com.<\/p>\n","protected":false},"author":4389,"featured_media":136237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","footnotes":""},"categories":[7,8,5],"tags":[],"make":[63,111],"post-state":[],"category_old":[118,286,150,151,123,287,133,131,289,299,238,132,129,283,284,125,124,139,148,290,128,206,278,288],"acf":[],"_links":{"self":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/147412"}],"collection":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/users\/4389"}],"replies":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/comments?post=147412"}],"version-history":[{"count":0,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/posts\/147412\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media\/136237"}],"wp:attachment":[{"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/media?parent=147412"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/categories?post=147412"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/tags?post=147412"},{"taxonomy":"make","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/make?post=147412"},{"taxonomy":"post-state","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/post-state?post=147412"},{"taxonomy":"category_old","embeddable":true,"href":"https:\/\/thedetroitbureau.com\/wp-json\/wp\/v2\/category_old?post=147412"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}