Honda Trading Expects for Favorable Sales and Profits for F2010

Honda Trading Corporation expects for large recovery of sales and profits for fiscal 2010 ending in March 2011. The firm’s consolidated net sales exceeded 400 billion yen in the first half year. The full-year sales are expected to increase by 35.9% to 800 billion yen from fiscal 2009. The full-year before-tax profit is estimated to exceed 7.6 billion yen in fiscal 2009 and to approach 9.5 billion yen in fiscal 2008. The firm’s light metal business unit enjoys high level operations for secondary aluminium alloy and molten aluminium mainly in emerging countries.

Molten Aluminum Producer Foshan, the firm’s operating plant in Guangdong, China, is presently in full production of molten aluminium at 900 tonnes per month as well as stable output of secondary alloy at 300 tonnes per month. PT Molten Aluminum Producer Indonesia, another offshore plant, enjoys full operation for molten aluminium at 1,000 tonnes per month and secondary alloy at 3,000 tonnes per month thanks to the strong demand from growing motorcycle market.

On the contrary, domestic operations are concerned to slow down in or after November. Current productions are 1,400 tonnes per month in Saitama plant at 77% operating rate, 2,500-2,700 tonnes per month in Gunma plant at 70-80% operating rate and 2,400-2,500 tonnes per month in Kumamoto plant at around 50% operating rate. Honda Trading’s official person said domestic output may decline by 20-30% in or after November when Japanese government’s stimulus policy for eco friendly cars ended.