Honda Motor Company, Japan's second-largest car maker, said today that it had sunk into loss in its fiscal fourth quarter due to weak sales and a stronger yen.
Honda posted a net loss of 186.1 billion yen ($1.9 billion) for the three months to March, against a year-earlier profit of 25.4 billion yen.
The group logged an operating loss of 283 billion yen for the quarter as revenue tumbled 41.6% from a year earlier.
Japanese car makers have taken a heavy blow from the global economic downturn, which has caused their sales to plunge. A stronger yen has also reduced the value of their overseas earnings and made it harder for them to stay competitive in foreign markets.
Honda said its exit from some motorsports had added to its losses. The group recently sold its Formula One team.
For the full business year to March, Honda's net earnings slumped 77.2% to 137 billion yen. Operating profit dived 80% to 189.6 billion yen.
But despite its quarterly loss, Honda is expected to be the only one of Japan's top three car makers to make a profit for the past financial year as a whole, helped by robust sales of motorcycles.
For the current year to March, Honda forecast net earnings of 40 billion yen and operating profit of 10 billion yen.
