Japan Still Battles Weak Production - Analyst Blog
August 30 2011 - 10:00AM
Zacks
Automakers in Japan saw weak production and sales in July on the
back of strong yen, unstable global economy and parts-supply
problem due to the earthquake and tsunami in Japan on March 11.
Global production at Toyota Motor Corp. (TM)
dipped 6.1% on a year-over-year basis to 594,614 vehicles during
the month while its domestic sales of passenger cars, trucks and
buses slashed 35% and exports slid 5% due to lower shipments to
North America.
However, Toyota plans to ramp up production in the coming months
to make up for the lost production due to the disaster.
Consequently, the automaker plans to manufacture additional 350,000
vehicles between October and March 2012.
Honda Motor Co. (HMC) saw the worst. Its global
vehicle production plunged 34% to 206,727 units in July for the
sixth straight month, while its domestic sales tumbled 31.5% and
exports declined more than 19%.
Nissan Motor Co. (NSANY) fared well compared to
both the automakers. Its worldwide production appreciated 18% to
388,680 vehicles. Its production in the U.S. was boosted by strong
demand for the Altima sedan. Despite a 17% fall in domestic sales,
the company’s global sales improved 8% due to a 23% rise in exports
during the month.
Meanwhile, global vehicle production at Suzuki Motor Corp.
slipped 3.6% to 228,147 units, Mazda Motor Corp. declined 13% to
103,384 units, and at Mitsubishi Motors Corp., decreased 5% to
97,862 units.
Toyota revealed a profit of ¥1.16 billion ($14.21 million) or 37
yen cents per share for the first quarter of its fiscal year ended
March 31, 2012, which plummeted from ¥190.47 billion ($2.33
billion) or ¥60.74 per share a year ago.
The sharp fall in profit was attributable to substantial decline
in vehicle sales all over the world, especially North America and
Europe due to disruptions in supply of parts caused by the twin
disaster in Japan.
On the other hand, Honda posted a sharp 88.3% fall in profit to
¥31.8 billion ($394 million) or ¥17.64 per share (22 cents per
share) in the first quarter of its fiscal year from ¥272.49 billion
or ¥150.27 per share in the same quarter of prior fiscal. The
decline in profit was attributable to adverse impact from the Japan
disaster and unfavorable currency translation effects.
However, Nissan reported a 1.6% increase in revenues to ¥2.08
trillion ($25.48 billion), while its profit totaled ¥85 billion
($1.04 billion). Nissan sold 1056.000 units globally during the
quarter, an increase of 10.6% from the same period last year.
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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