Honda Earnings Rise 16%, Shakes Off Quake With U.S. Production
Bloomberg reports that Honda's first quarter earnings are up 16% over last year. Honda President President Takeo Fukui attributes the rise in profits to several factors, ranging from the weak Japanese yen making exports cheaper to the success of the new CR-V and Civic in capturing U.S. market share from Detroit's own. While incentives have reduced operating profits in the U.S., the overall outlook is still healthy- primarily due to an increase of 9.5% in overseas production. Which is just as well. Bloomberg also reports that Japan's domestic automotive output may fall, as Riken (Japan's largest maker of piston rings for engines) shut down production after the July 16 earthquake in Niigata prefecture. Pre-quake, Honda's domestic production had already fallen 4.8 percent.