Honda Q3 profit doubles, sales get weak yen boost

Updated 11 March 2014
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Honda Q3 profit doubles, sales get weak yen boost

TOKYO: Honda's quarterly profit doubled from a year earlier as sales got a big perk from a weak yen.
Honda Motor Co. reported a 160.7 billion yen ($1.58 billion) net profit for the October-December fiscal third quarter, up from 77.4 billion yen the year before.
The maker of the Fit subcompact, Odyssey minivan and Asimo humanoid, posted a 25 percent jump in quarterly sales to 3.02 trillion yen ($29.6 billion).
A favorable exchange rate helped Honda's fortunes. The dollar has been trading above 100 yen compared with about 80 yen a year earlier.
A weak yen helps lift the value of Japanese exporters' overseas revenue.
About 425 billion yen ($4.2 billion) of Honda's sales and other operating revenue was due just to a favorable currency for the quarter.
Honda stuck to its previous forecast for a 580 billion yen ($5.7 billion) profit for the fiscal year through March 31, 2014, up 58 percent from the previous fiscal year, on 12.1 trillion yen ($118.6 billion) sales, up nearly 23 percent.
Tokyo-based Honda, like other Japanese automakers, has bounced back from troubled years, such as the 2011 tsunami and earthquake in northeastern Japan that devastated parts suppliers and disrupted production.
Honda was also hurt by flooding in Thailand in late 2012. Anti-Japanese sentiment that flared up in China eroded sales in that key growth market last year.
Honda said its results were helped by cost cuts and the launch of new models, in addition to the help it got from a weak yen. It sales grew in North America, Japan and the rest of Asia.
During the quarter, Honda sold 1.08 million vehicles around the world, up nearly 10 percent from a year earlier. It also reported an 11 percent jump in motorcycle sales.
It expects to sell nearly 4.39 million vehicles for the fiscal year through March 2014, up 9 percent from 4.01 million in the previous year.
Although upbeat, that's lower than its earlier forecast of 4.43 million vehicles, as it expects fewer sales in North America, Asia and Europe.
For the nine months through December 2013, Honda's net profit gained nearly 39 percent to 403.5 billion yen ($4 billion). Nine-month sales soared 23 percent to 8.75 trillion yen ($86 billion).
Toyota Motor Corp., the world's top automaker, reports earnings Tuesday, while Nissan Motor Co. reports Feb. 10.


‘There is no free lunch’, Macron tells tech giant CEOs

Updated 24 May 2018
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‘There is no free lunch’, Macron tells tech giant CEOs

PARIS: President Emmanuel Macron told executives from the world’s biggest technology firms on Wednesday that he wanted innovation to be a driving force for the French economy, but also that they needed to contribute more to society.
The French leader paints himself as a champion of France’s plugged-in youth and wants to transform France into a “startup nation” that draws higher investments into technology and artificial intelligence. He is also spearheading efforts in Europe to have digital companies pay more tax at source.
Macron’s guest-list included Facebook Inc. Chief Executive Mark Zuckerberg, IBM’s Virginia Rometty, Intel Corp’s Brian Krzanich, Microsoft Corp’s Satya Nadella and a raft of other big hitters in the corporate world.
“There is no free lunch,” he quipped in English to the executives lined up on the steps of the Elysee Palace for a photo call at a lunch meeting. “So I want from you some commitments.”
As Macron spoke, IBM announced it would hire about 1,400 people in France over the next two years in the fields of blockchain and cloud computing.
Ride-hailing app Uber also said it planned to offer all its European drivers an upgraded version of the health insurance it already provides in France in a drive to attract independent workers and fend off criticism over their treatment.
Macron will hold one-on-one talks with Mark Zuckerberg on tax and data privacy on the sidelines of the Tech For Good summit — a day after the Facebook chief executive faced questions from European Union lawmakers.
Those talks will be frank, an Elysee official said ahead of the meeting. While Macron will be pitching France Inc, he will also push his case for a European Union tax on digital turnover and a tougher fight against both data piracy and fake news.
Zuckerberg on Tuesday sailed through a grilling from EU lawmakers about the social network’s data policies, apologizing to leaders of the European Parliament for a massive data leak but dodging numerous questions.
Macron told the executives that business needed to do more in tackling issues such as inequality and climate change.
“It is not possible just to have free riding on one side, when you make a good business,” the French president said.