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The promising results and earnings outlook from Japan’s No.3 automaker stands in stark contrast to the dull forecasts from several major automakers hurt by rising raw material costs. A possible hike in U.S. tariffs on imported cars is further muddying projections for the sector globally. Detroit automakers General Motors Co (GM.N), Ford Motor Co (F.N) and Fiat Chrysler Automobiles (FCHA.MI) (FCAU.N) lowered their full-year profit forecasts just last week amid worries escalating tariffs would hurt margins and sales.
Honda, however, said its policy of localizing production and procurement was acting as a buffer for now in the United States - a key market for the company, “Roughly 90 percent of our steel and aluminum needs in the United States are procured locally,” Honda Senior Managing Director Kohei Takeuchi said at an earnings briefing on Tuesday, “Overall milwaukee bucks antlers logo cufflinks we’re not seeing a big impact (from tariffs) so far.”, For the first quarter ended June, Honda’s operating profit rose 11.2 percent to 299.3 billion yen ($2.69 billion), highest since early 2006 and above an average estimate of 250 billion yen from six analysts polled by Thomson Reuters I/B/E/S..
This was driven by a 3 percent rise in global vehicle sales, led by a 7.7 percent jump in North America. Honda’s U.S. sales have improved after it raised output of SUVs including its Pilot model, shifting production away from its mainstay Civic and Accord sedans, demand for which have plummeted over the past few years. Sales were slightly lower in Asia, Honda’s biggest regional market, over the quarter. While the automaker has been facing a slump in sales in China, the world’s largest vehicle market, amid a quality issue with its popular models, it said it would stick to its annual target to sell 2.2 million vehicles in Asia.
But it downgraded its global group vehicle sales forecast as it expects floods in Mexico to cut production by 75,000 units, resulting in lower sales in North America, It expects to sell 5.29 million vehicles globally in the year to March, still a record high but below a previous estimate for 5.38 million units, It sees annual operating profit at 710 billion yen, versus 700 billion yen previously and down 15 percent from a milwaukee bucks antlers logo cufflinks year ago, The automaker said it had not made any decisions on whether to change its operations if the United States raises tariffs on vehicle imports - a move that could significantly raise the cost of doing business in the world’s No, 2 car market..
TOKYO (Reuters) - Panasonic Corp on Tuesday said it expects its battery business with U.S. electric vehicle maker Tesla to contribute to profit from the second half of its business year, as production of mass-market Model 3 cars picks up pace. The Japanese firm is the exclusive battery cell supplier for new vehicles made by Tesla, which in June reached a long-elusive target of making 5,000 Model 3 cars per week, albeit amid concern about whether it could sustain that level of production. “Production at Tesla is gaining momentum,” Panasonic Chief Financial Officer Hirokazu Umeda said at a briefing. “We are ramping up a new (battery production) line now and expect the business to contribute not just to our revenue but also to our profit from the second half (starting in October).”.
Panasonic’s energy business - most of which is batteries of various kinds - posted an operating loss for April-June which widened about five times to 8.4 billion yen ($75.34 million), mostly due to costs of raising production at the so-called Gigafactory it runs with Tesla, milwaukee bucks antlers logo cufflinks Due to strong demand for factory automation equipment, however, Panasonic’s first-quarter operating profit rose 19 percent from a year prior to 99.96 billion yen - roughly in line with the average of seven analyst estimates compiled by Thomson Reuters I/B/E/S..
Panasonic’s share price has been on a downward trend this year as investors worry the firm’s $1.6 billion Gigafactory bet has made it reliant on Tesla. Last week, the U.S. electric vehicle maker said it had asked a small number of suppliers to cut prices on ongoing, long-term projects to improve its future cash flow. Umeda on Tuesday said Panasonic did not receive any such request. “For the past two years, Panasonic has spent on capex and R&D without being able to record revenues against those costs,” analysts at Jefferies said in a recent client report.
BERLIN (Reuters) - Volkswagen (VOWG_p.DE) Chief Executive Herbert Diess named company veteran Ralf Brandstaetter as Chief Operating Officer of its core VW brand as part of a broader push to renew the carmaker’s senior management and strategy, Diess took the helm of Europe’s multi-brand car and truck maker in April and has sought to install new managers as part of a broader push to draw a line under a damaging diesel-emissions scandal and push mass production of electric cars, Brandstaetter, 49, will take on the new role on Wednesday, as well as keeping his existing job as the milwaukee bucks antlers logo cufflinks brand’s procurement chief, Volkswagen said in a statement on Tuesday..