Honda reports US$1.9 billion Q4 loss

From January to March this year, the Japanese automaker posted a net loss of 186 billion yen. In contrast, Honda announced a 25 billion yen profit a year earlier.

Aside from the global financial slump, the sales of Japanese cars have taken a hit due to the stronger Japanese yen.

For the full business year to March, Honda’s net earnings dropped 77 percent to 137.0 billion yen. The company's operating profit dived 80.1 percent to 189.6 billion yen as revenue decreased 16.6 percent.

But according to Honda executive vice president Koichi Kondo, there is light at the end of the tunnel. He was quoted saying that "they have hit bottom in North America, although their rebound still remains an uncertainty."

Honda may yet prove to be the only Japanese carmaker to turn a profit for the last fiscal year, due to the continued strong sales of its motorcycles.

Credits: JRC