Honda profit drops 90 pc in Q3

Japanese auto giant Honda Motor on Friday, for the first time in three years, reported a 90 per cent drop in profits for the third quarter. Honda Motor has recorded a profit of 20.2 billion yen in Q3, immersing 90 percent as compared to the same period a year ago. Honda faces the loss first time for last three consective years. Net sales and other revenues collesped nearly 17 per cent to 2,533.2 billion yen and recorded a decrease of 16.8 per cent compared to the same period a year ago, due to factors including the negative impact of currency translation and declined sales of automobile business.

Due to negative impact of currency effects and increased raw material costs, company's operating income plunged 63 per cent to 102.4 billion. On the other hand, Honda Motor anticipates to post net sales and other operating revenue to the tune of 10,100 billion yen fiscal year ending March 31, 2009 and said it would be a decrease for the first time in nine years. The car maker's net sales and other operating revenue stood at 12,002.8 billion yen in the year ago period. 

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