Honda to Build New Acura in Ohio - Analyst Blog
May 15 2013 - 1:49PM
Zacks
Honda Motor Co. (HMC) plans to manufacture the
new version of its Acura NSX sports car at a new plant in Ohio. The
company will invest $70 million for building the plant known as
Performance Manufacturing Center, located inside the former North
American Logistics facility and adjacent to Honda’s existing
facility in Marysville.
The new plant will recruit about 100 skilled workers from existing
operations in Ohio, with mass production expected to begin in 2015.
It will be the company’s third plant in Ohio, located few miles
from the Honda R&D Americas Inc. Ohio Center, which is
engineering the Acura NSX for production. The company will assemble
the car’s powertrain at its engine plant in Anna.
Acura NSX is the high performance sports car that was produced in
Japan since 1990 until 2005. Honda revealed that the new version of
the model will feature a lightweight chassis, a mid-mounted V-6
engine, a dual-clutch transmission and an all-wheel drive hybrid
powertrain. It will be produced entirely at the Ohio facility for
both the North American and export markets.
Currently, Honda operates 14 major manufacturing facilities in
North America, which manufacture Honda and Acura vehicles,
automobile engines and transmissions, Honda all-terrain vehicles,
lawnmowers and general purpose engines.
In the fourth quarter of the fiscal year ended Mar 31, 2013, the
company posted a 5.8% rise in earnings to ¥75.8 billion ($805
million) or ¥42.03 (45 cents) per share from ¥71.6 billion or
¥39.72 in the same quarter of prior fiscal year. However, earnings
lagged the Zacks Consensus Estimate by 18 cents during the
quarter.
Consolidated net sales and other operating revenues grew 14.1% to
¥2.7 trillion ($29.2 billion). The increase was attributable to
improved revenues in automobile business operations as production
recovered from the impact of Thai flood as well as favorable
foreign currency translation effects.
Consolidated operating profit rose 21.4% to ¥136.0 billion ($1.4
billion) from ¥112.0 billion in the fourth quarter of fiscal 2012,
driven by positive impact from cost reduction measures and
favorable foreign currency effects, partially offset by higher
R&D and SG&A expenses.
For fiscal 2014, Honda has projected revenues to increase 22.5% to
¥12.1 trillion. Operating profit is expected to surge 43.2% to ¥780
billion and profits are anticipated to jump 58.0% to ¥580 billion
or ¥321.81 per share. The company expects higher revenues,
favorable model mix and effective cost reduction measures to
contribute to the increase in profits during the year.
Honda is a leading manufacturer of automobiles and the largest
manufacturer of motorcycles in the world. It is the second largest
automaker in Japan following Toyota Motor Corp.
(TM) and operates globally like another Japanese automaker
Nissan Motor Co. (NSANY). Currently, shares of
Honda retain a Zacks Rank #4 (Sell).
While we avoid Honda from investment perspective, Peugeot
S.A. (PEUGY) is worth to look for in the broader industry
with a Zacks Rank #2 (Buy).
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Get Free Report
PEUGEOT CIT-ADR (PEUGY): Get Free Report
TOYOTA MOTOR CP (TM): Free Stock Analysis Report
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