Earnings: Honda losses quadruple

City sales jumped 34% to 2,890 units, Civic sales crawled up one percent to 1,230 units during period under review

KARACHI:

Honda Atlas’ losses widened four-folds to Rs221 million in April to June 2012, against Rs51 million in the same period last year.

Massive increase in other operating expenses and finance cost sent the car assembler off track, data sent to the Karachi Stock Exchange shows.

The car assembler sales plummeted due to problems in its supply chain since October because of floods in Thailand from where parts are imported and then locally assembled. The company’s production plant was shut for three months straight during January to March 2012.

Sales revenue surged 30% to Rs6.0 billion in the three quarters ended June 31 against Rs4.6 billion in the same period amid huge pile up of orders during shutdown.

City sales jumped 34% to 2,890 units while Civic sales crawled up one percent to 1,230 units during the period under review.

Published in The Express Tribune, July 25^th, 2012.