Honda 4Q profit down 20 percent

Honda's profits fall as sales up in quarter

Although Honda Motor Company Ltd. 's fourth-quarter sales jumped 9 percent, the company reported Wednesday its quarterly profit came in 20 percent below the same period in 2006.

Last year's fourth quarter included a 138 billion yen gain from the reimbursement of a portion of employees' pension funds from the Japanese government, Honda said.

Honda (NYSE:HMC) said its income for the three months ended March 31 fell to 176.7 billion yen (U.S. $1.5 billion), from 219.5 billion yen a year earlier.

The yen to dollar exchange is based on Wednesday's rate.

Sales jumped to 3.1 trillion yen (U.S. $26 billion), with auto unit sales up 6 percent worldwide to 957,000 for the quarter.

Fiscal year profit fell less than a percent to 592.3 billion yen (U.S. $5 billion), from 597 billion yen for 2005. That decline is also due to a lack of gains from the pension return.

Honda said sales for the year achieved an all-time record for the seventh consecutive year, growing 12 percent to 11.1 trillion yen ($93.5 billion), from 9.9 trillion yen a year earlier.

Honda runs its Central Ohio plants in Marysville, Russells Point, Anna and East Liberty, and a research and development center in Raymond through its Marysville-based subsidiary, Honda of America Manufacturing Inc.

Source: [url=http://sanantonio.bizjournals.com/columbus/stories/2007/04/23/daily14.html]San Antonio Business Journal[/url]