Honda (HMC) shares fell 6.7% on Monday morning after posting a 56% drop in quarterly earnings, more evidence that the Japanese automaker is still climbing back from the massive supply disruptions resulting from the March earthquake and tsunami in Japan. Vehicle sales in North America fell 27% year over year.
The company has also been hurt by the rise in the value of the Yen. And Honda was unable to give a forecast, citing a recent flood in Thailand which has disrupted production. That flood will crimp the company’s plans to ramp up production so it can make up for the shortfall in the months following the earthquake.
Auto dealers were having trouble supplying their lots with Hondas over the summer. Earlier this year, Nissan (NSANY) released a commercial referring to the shortage of competitors’ cars on auto lots (without directly mentioning Honda, it was clear that was who Nissan was targeting):
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