Honda reports fiscal quarterly loss, to streamline models
TOKYO (AP) — Honda has reported a loss for January-March, despite growing sales, as an unfavorable exchange rate, income tax expenses and other costs hurt results.
Honda Motor Co. reported Wednesday a 13 billion yen ($118 million) loss for the fiscal fourth quarter, a reversal from a 107.7 billion yen profit the previous fiscal year.
Quarterly sales rose 3% to 4.05 trillion yen ($37 billion).
For the fiscal year through March, Honda recorded a 610.3 billion yen ($5.5 billion) profit, down 42% on year because of an absence of a U.S. tax break, which boosted earnings the previous year.
Chief Executive Takahiro Hachigo announced Honda will streamline its product offerings, consolidating model variations, and increase parts-sharing to cut costs.
He said the first model developed under the new “architecture” will launch next year.