Honda, Mazda Enjoy Strong 2Q, But Forecasts Portend Tough 2H |
| Wall Street Journal - Oct 29, 2010 |
Unbowed by the yen's surge, Honda Motor Co. (7267.TO) and Mazda Motor Corp. (7261.TO) Friday reported solid earnings in the fiscal second quarter, as growing sales and cost-cuts canceled out the Japanese currency's punishing impact on their earnings.
But the two Japanese auto makers weren't as upbeat about the outlook for the rest of the year, with the business environment becoming ever tougher as the yen approaches a record high against the U.S. dollar, biting even harder into their profits.
"Let me repeat this. The strong yen is painful," Takashi Yamanouchi, Mazda chief executive, said at a press conference held to announce the company's earnings.
As part of steps to cope with the yen's surge, executives at the two companies said they are increasing or considering increasing parts imports.
Honda executive vice president Koichi Kondo said that the company has already been working to procure lower-priced parts from overseas suppliers.
"It is natural that the strong yen is accelerating this drive," Kondo said at Honda's earnings press conference.
Read Full Article from Wall Street Journal
- Posted: 2010-10-29 21:48:48
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