Honda slashes forecast again, Nissan cuts output

[Adsos Letter]

Source: Reuters

TOKYO (Reuters) - Honda Motor Co (7267.T: Quote, Profile, Research, Stock Buzz), Japan's No.2 automaker, cut its annual operating forecast by two-thirds on Wednesday, its third profit warning in five months due to huge currency losses and tanking global car sales.

Automakers everywhere are under enormous pressure to cut costs and save cash to weather the storm as a global recession and tight credit hammer demand.

Honda said it would cut capital spending, delay new plants and product launches and reduce its third-quarter dividend as the strong yen compounds problems for Japanese producers.

Honda, also the world's largest motorcycle maker, said it now expected an operating profit of just 180 billion yen in the year to March versus the 550 billion yen it forecast in October.



Read more: http://www.reuters.com/article/businessNews/idUSTRE4BF1P720081217?feedType=RSS&feedName=businessNews&rpc=23&sp=true

[Cessna Invesco Palin]

1. FYI, the current exchange rate is about 88.5 yen to the dollar.

So unless my math is totally wrong, that's something like a $2 billion operating profit.

[Hubert Flottz]

2. It's those damned UAW workers!

They are plotting to destroy the world now!