Tuesday, June 28, 2011

Honda: Operating profit forecast not conservative

TOKYO: Honda Motor Co's annual operating profit forecast is not conservative given yen strength and rising raw materials prices, the automaker's chief financial officer said on Tuesday.

"I don't think assuming 80 yen to the dollar is conservative at all," Fumihiko Ike told a small group of reporters. "The same goes for raw material prices," he said.

Japan's No.3 automaker this month forecast a worse-than-expected 65 per cent fall in annual operating profit to 200 billion yen ($2.49 billion) for the year to March 2012 and projected a 6 per cent drop in global car sales to 3.3 million vehicles.

Many analysts consider its guidance overly conservative.


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