Honda CFO says profit forecast not conservative

The CFO of Honda Motors has declined that the profit forecast for March 2012, which was 200 billion yen was conservative. He said that keeping in mind the yen’s rising strength and the rise in raw material prices, the forecast wasn’t pessimistic at all just realistic. These factors combined with the rising prices of precious metals have caused the cost of a car to increase by 24,000 yen. This in turn can cause a decline in sales of vehicles to 3.3 million. Rival Nissan has planned to boost the operating margin to 8% riding on it’s luxury brand Infinity and Honda has planned to answer by expanding it’s own luxury brand, Acura.

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Honda CFO says profit forecast not conservative