Honda Cars : Honda Raises Yearly Outlook | 2013 New Honda Car Reviews 0

While cross-country rival Toyota may be slashing its production forecast, Honda has announced that it has raised its full-year financial outlook. Honda’s fiscal year ends March 31st.

Honda announced on Friday that it has upped its annual profit forecast to $6.2 billion, a significant increase over its previous goal of $5.65 billion. Honda says its year end sales may total as much as $111 billion.

Although the strong value of the yen has hurt Honda’s earnings, better than expected sales in the Asia region have helped alleviate losses associated with the poor exchange rate. Honda’s motorcycle division has also been performing well.

“Honda is solidly increasing its profitability, and the motorcycle unit is also supporting the business,” said Tadashi Usui, an analyst at Moody’s Investors Service in Tokyo. “Compared with Toyota, Honda is more economical with its capital investments, so we can be confident about its finances from a fixed-cost perspective.”

Despite the positive news, Honda expects a weaker second half to its fiscal year. Honda is calling for a $1.14 billion profit during the final six months of the year, compared to profits of $5.05 billion during the first half.

References1.’Honda raises annual…’ view

Source;
http://www.leftlanenews.com/honda-raises-yearly-outlook.html

Honda Cars : Credit Rating Initiation: Honda Motor Company | 2013 New Honda Car Reviews 0

Morningstar is initiating credit coverage of Honda HMC with an issuer rating of A+. Our credit rating focuses on the industrial operations but also considers the relative health of the firm's finance subsidiary. Honda's ratings benefit from its strong liquidity and somewhat more diversified product portfolio relative to some of its peers. The firm's good Business Risk score also encompasses Honda's impressive size and focus on producing vehicles in its end markets rather than relying on exports as some of its rivals do, which allowed it to manage through the recent downturn while generating operating profits. Further, the firm's total debt/earnings before interest, taxes, depreciation, and amortization was a modest 0.8 times at the end of the most recent fiscal year, when EBITDA hit trough levels. We forecast leverage falling to less than 0.5 times beginning in the current fiscal year based on a strong recovery in the auto market. The good Solvency Score captures the strong balance sheet along with excellent interest coverage, although returns on invested capital remain fairly weak. Honda currently has cash and short-term investments that exceed total industrial company debt outstanding. In part due to this and our forecast for healthy free cash flow generation over our forecast period, Honda generates a good Cash Flow Cushion score. While the company has historically used free cash flow for both dividends and share repurchases, these were significantly curtailed during the past two fiscal years and the firm used its substantial free cash flow in the most recent fiscal year to rebuild its cash coffers. We expect the firm to continue maintaining its conservative financial posture, including modest dividend payments relative to free cash flow, as well as its strategy of slow and steady growth. This should allow the firm to continue to manage through the cyclical and competitive risks facing the auto industry.

Source;
http://torontostar.morningstar.ca/globalhome/industry/news.asp?articleid=351553

Honda Cars : Dedicated Acura Financial Services Launched | 2013 New Honda Car Reviews 0

TORRANCE, Calif. - 04/23/2009
American Honda Finance Corp. (AHFC) this week launched Acura-branded financial services to better satisfy the needs of Acura dealers and customers. The creation of Acura Financial Services (AFS) marks a major milestone in Acura history. This is just the first step of a multifaceted effort to further enhance customer service and raise the brand image for Acura, the luxury nameplate that pioneered the launch of Japanese luxury automobiles in the U.S.

"With our most recent ranking in the top two, three and four positions in the luxury lease segment of the 2008 J.D. Power and Associates Consumer Financing Satisfaction Study, the timing is perfect to utilize our years of experience and expertise to create financial services that will meet the needs of Acura clients," said Stephen E. Smith, senior vice president of AHFC. "The creation of separate Acura-branded financial services parallels other moves to strengthen and differentiate the Acura luxury brand."

About American Honda Finance Corporation
American Honda Finance Corporation, a wholly-owned subsidiary of American Honda Motor Co., Inc., is the captive finance provider of consumer financial products for Honda and Acura automobiles, sport utility vehicles, trucks, minivans, Honda motorcycles, Honda power equipment, and Honda marine products. In addition, AHFC also provides Honda and Acura dealerships with vehicle floorplan programs, real estate, construction and capital loans, revolving lines of credit and inventory insurance.

About Acura
Acura offers a full line of technologically advanced performance luxury vehicles through a network of 270 dealers within the United States. The Acura lineup features five distinctive models including the RL luxury performance sedan, the TL performance luxury sedan, the TSX sports sedan, the turbocharged RDX luxury crossover SUV and the award-winning MDX luxury sport utility vehicle. Acura also recently unveiled a prototype of the ZDX, an all-new luxury four-door sports coupe, at the New York International Auto Show that will go on sale this fall.

Source;
http://www.hondanews.com/categories/793/releases/4995