Honda Motor Co. has moved up its year-end news conference by two days to tomorrow, Dec. 17, raising the possibility that the automaker could issue its third profit warning this year.
Honda Executive Vice President Koichi Kondo told Reuters last month that the profit forecasts for the fiscal year to March 31 would have to be revised, saying that meeting them would be a "Herculean task" in light of tumbling vehicle sales around the world.
Honda declined to comment on the possibility of a profit forecast revision. It did not give a reason for the abrupt change in plan.
But a source with knowledge of the situation said the board of directors was set to meet on Wednesday. The news conference will be attended by CEO Takeo Fukui and other executives.
Honda originally was scheduled to hold the annual year-end news conference on Friday, Dec. 19.
Honda also scheduled an investor relations meeting on "management strategy" with Kondo on Wednesday evening in Tokyo.
"In addition to plans to cope with the changing environment going forward, we think the time is right for management to explain its operating projections in light of the change in the climate for earnings," JPMorgan auto analyst Takaki Nakanishi wrote in a note to clients.
Last week, Honda said it would cut another 119,000 units from planned production in North America through March, less then a month after announcing cuts of nearly 80,000 units on three continents.
In a further and perhaps bigger blow, the yen has strengthened to 13-year highs, trading below ¥90 per dollar in European trade today.
Honda, which has set its dollar assumption at ¥100 for the October-March second half, says every ¥1 swing in the dollar affects annual operating profit by about ¥20 billion ($220 million). (Which makes it's Acura and Honda import lines extraordinary more expensive and unprofitable).
On Oct. 28, Honda lowered its earnings forecasts for this business year by 13 percent at the operating level, much tamer than the profit warnings given subsequently by domestic rivals Nissan Motor Co. and Toyota Motor Corp.
http://www.autonews.com/article/20081216/ANA02/812169963/1209 (subscription only)
I guess Honda ain't sellin' 'enuf dem big profitable SUV's and Ridgelines.