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Both Toyota (TM) and Honda (HMC) report dismal year-over-year results for fiscal fourth-quarter 2020, thanks to the coronavirus outbreak.
Toyota (TM) expects operating income to decline 79.5% year over year to 500 billion yen in fiscal 2021, which would mark the lowest profit in nine years.
(Bloomberg) -- The British government’s call to restart the economy may have sounded good, but there’s little evidence the country is taking heed.In the week when Prime Minister Boris Johnson said it was time to get back to work, some parts of the economy are humming along. What’s less clear is whether his decision to ease lockdown restrictions made much difference.Activity on construction sites is growing and factories are cranking up output where they see demand. Yet this has been happening gradually for weeks, as businesses devised working practices that avoid spreading coronavirus. Those still in a state of paralysis—restaurants, pubs and manufacturers whose markets have collapsed—have less reason for optimism.“The clear guidance to go to work if you cannot work from home is not yet backed up by guidance that makes this possible in many work environments,” said Justin King, the former chief executive of supermarket chain J Sainsbury Plc and a current non-executive director of Marks & Spencer Plc.With other European governments opening up economies, Britain is trying to follow suit without risking a spike in cases after the country recorded more deaths than anywhere else on the continent. Chancellor of the Exchequer Rishi Sunak said the U.K. is facing a significant recession after the latest data showed the economy shrank almost 6% in March.Read More: U.K. Begins ‘Baby Steps’ in Its Long Journey Out of LockdownThat balancing act was highlighted when Johnson’s call was followed by Sunak extending stay-at-home salary coverage for millions of workers. The move throws another lifeline to businesses that otherwise risk failing, yet prolongs the dysfunctional status quo.Manufacturers have little interest in resuming normal production when there’s no market for the goods on offer. The government’s additional help paying salaries of workers stuck at home gives them one less reason to go looking for new customers.“The extension of the furlough scheme will allow companies to restart more cautiously, stagger production and see what works,” said one executive in the auto industry, who asked not to be identified by name.U.K. Data DashboardCompanies have complained of mixed messages, unclear guidance and rules that don’t apply to the entire country. Scotland, for example, is following its own path out of the lockdown and has refused to ditch the “stay home” message for Johnson’s new “stay alert” mantra.There’s also still no date for opening much of the retail industry, and executives are also asking for more guidance on the use of protective equipment to avoid spreading coronavirus. Airlines and some manufacturers have warned a planned 14-day quarantine for people arriving into the country risks further crippling their ability to operate.Government advice issued this week includes a ban on hot-desking, an order to open office windows and guidance on carrying out Covid-19 risk assessments. It also hammered home the dangers for any business that moves too fast.“Employers will not be able to get away with forcing workers to work in workplaces that are not Covid-secure,” Johnson said.Here’s an overview of some key areas of the economy:AirlinesGovernment plans to quarantine visitors have rocked the industry’s hopes of a partial rebound in flying during the crucial summer season. The chief executive of the country’s airlines lobby group said the industry has not been given any details on how the measures would work, what exemptions will be in place or when it would be reviewed.Read More: U.K. Quarantine Upends Airline Plans for Return to FlightRyanair Holdings Plc Chief Executive Officer Michael O’Leary, who plans to restart services in July, was scathing. He blamed the government for “chaos and confusion” in an interview on Wednesday.The transport secretary is “out there warning that the British government now wants people to return to work, but then they say they want to limit the London underground and commuter trains to 10% of the normal capacity,” O’Leary said. “When they get asked how do you propose to do that, they say ‘well we expect the common sense of the British people.’”Retail and HospitalityThe extended furlough payments are keeping shops and restaurants on life support, though many risk bankruptcy due to rent demands. Businesses are working on restarting safely using staggered opening times, crowd control systems and promotion strategies that don’t bring hordes of customers to their door.Marks & Spencer director King said there’s still little clarity on when retail can reopen, beside garden centers. “It seems that will happen in phase two in June, or phase three in July,” he said. “The extending of the furlough scheme points towards the latter timing.”Mobile phone company Vodafone Group Plc is making plans to reopen most of its 411 stores in early June as long as employees can get there without using public transport, a spokesman said. There will be no display devices to touch and stores may have fewer staff. Some pubs are concerned their businesses have been neglected. Matt Ward, owner of The White Horse in south London, said he’s concerned about retaining workers, like his manager who is from Brazil and has been in the country for 12 years.Johnson’s announcement “made it sound very up in the air—lots of ifs, buts, maybes,” Ward said. “July 1st was the date given, but very loosely for some areas of hospitality, pubs weren’t even mentioned. I don’t think The White Horse will be open on July 1st.”AutosSome suppliers restarted work in recent weeks, especially those supplying car factories abroad, according to one industry official. Andy Palmer, CEO of Aston Martin Lagonda Global Holdings Plc, said the company is seeking to restart U.K. plants progressively. Its Gaydon headquarters, where it designs and builds cars including the Vantage model, will take longer to reopen because of the size of the cars and the density of the production line.Nissan Motor Co. has said it plans to restart Britain’s biggest car plant in early June. The company is “working with very limited visibility on future market conditions, therefore we will manage the restart process very carefully, with our employees’ health and well-being a priority,” said a spokesman for the Japanese automaker.Honda Motor Co. said it also aims to resume production at its factory in Swindon, southwest England, early next month. The Society of Motor Manufacturers and Traders said on Thursday it had published guidelines for the industry. AerospaceRepresentatives of Rolls-Royce Holdings Plc and BAE Systems Plc, Europe’s largest defense firm, said the latest guidelines didn’t change things for them because they were already enforcing social-distancing at sites.About a quarter of BAE’s workforce is on site and the rest working from home after it reordered and redesigned production to meet social distancing guidelines. It introduced one-way walkways on sites, brought in shift patterns to reduce the number of staff on site and quarantined goods arriving at plants.Read More: Airbus Now Makes Ventilators on a Socially-Distant Factory FloorReal EstateProperty agents did get a lift this week after the government updated its Housing Market ReStart and Safe Working Charter. Dexters, London’s largest independent estate agent, is reopening its 70 branches and restarting physical viewings for customers.There’ll be regular checking of employee temperatures and clients visiting branches will be given a face covering and gloves. Agents will open doors, switch on lights and open windows for ventilation so that clients do not need to touch anything.UtilitiesPower station and grid workers have stayed on the job throughout the lockdown using social-distancing measures that won’t be eased soon. That includes sending engineers out alone to check infrastructure, moving staff to back up locations and body temperature scans at power stations. Work at Electricite de France SA’s nuclear construction site at Hinkley Point has continued, albeit with only half the regular workforce.Broadband company BT Group Plc is also working on plans to open stores again, a spokesman said. BT’s Openreach division, which connects homes and businesses to broadband, is going to gradually lift restrictions it had placed on its engineers entering properties from May 18 for the lowest-risk repairs and connections.ConstructionJohnson has targeted builders as one group with the best chance of getting back to work. Much of the industry already has, though. Contractors reported on May 6 that 73% of sites were open in England and Wales, up from 69% the week before, according to industry group BuildUK. With more guidance on protective equipment and traveling to work, more sites will reopen and productivity will improve, said its CEO, Suzannah Nichol.EntertainmentBritain’s Vue and Cineworld cinema chains are working toward the possibility of restrictions being lifted as soon as July. A spokeswoman for Vue said it’s working with the government, European officials and its trade group to design ways to make cinemas Covid-19 safe.HairdressersWith physical contact inevitable, hairdressers still need clear guidance from the government on what regulations to follow, especially on protective equipment, said Hilary Hall, chief executive of the National Hairdressers Federation. Its members are looking at removing magazines and drink services, and preventing staff from sharing equipment such as scissors and increased cleaning.There could also be a reduction in services provided. For example, a hair cut may be allowed, but eyelash tinting or any other service where an employee would be in close contact with a client’s eyes, nose or mouth would be temporarily stopped.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Amid coronavirus-induced uncertainty and financial crisis, Honda (HMC) refrains from providing any dividend forecast and financial outlook for fiscal 2021.
Honda Motor (NYSE: HMC) said that its operating profit for the fiscal year ended March 31 was 634 billion yen ($5.9 billion), down 13% from the prior fiscal year, as the effects of the coronavirus pandemic hammered its results for the January-March quarter.
Image source: The Motley Fool. Honda Motor Co, Ltd (NYSE: HMC)Q4 2020 Earnings CallMay 12, 2020, 3:00 a.m. ETContents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Watanabe -- Corporate PublicationsThank you very much for joining today for the broadcast meeting for the FY '20 and Fourth Quarter Financial Results meeting for Honda Motor Co.
Honda Motor Co on Tuesday posted its lowest operating profit in four years and refrained from releasing an earnings outlook for the current year because of uncertainty about the longer-term impact of the coronavirus on global car demand. Honda and other global automakers have begun gradually to resume operations at their vehicle plants, but face weak demand as job losses and concern about a global economic downturn weigh on consumer spending. Carmakers are also trying to cope with supply chain disruptions and social distancing measures to contain the coronavirus that are expected to limit output in the coming months.
While General Motors (GM) and BorgWarner (BWA) top first-quarter 2020 earnings estimates, Genuine Parts (GPC) falls short amid coronavirus woes.
Honda Motor Co said on Tuesday it has delivered 10 modified Odyssey minivans to the city of Detroit to safely transport healthcare workers and people potentially infected with COVID-19 for testing in one of the U.S. cities that has been hardest hit by the coronavirus pandemic. The minivans have been retrofitted with a plastic barrier behind the front seating area and a modified ventilation system to maintain an air pressure differential between the front and rear seating areas to reduce the risk of coronavirus transmission. Detroit has been especially hard hit by the outbreak, reporting 9,394 cases to date and 1,097 deaths through Monday, or 26% of all COVID-19 fatalities in Michigan.
The American Honda business of Honda Motor (NYSE: HMC) just reported its April auto sales, and they were ugly. Car sales were down an average of 55%, with similar results in both its Honda and Acura brands. Truck sales saw an average decline of 53%, at a 52% rate for the Honda brand, and 58% with Acura.
The head of the United Auto Workers union on Thursday said it was "too soon and too risky" to reopen auto plants and Michigan's economy in early May, citing insufficient scientific data and coronavirus testing to assure workplaces are safe. The warning from UAW President Rory Gamble on Thursday afternoon came as General Motors Co , Ford Motor Co and Toyota Motor Corp took new steps toward reopening North American vehicle manufacturing operations in an environment where consumer demand is uncertain and worker safety paramount.
Factory closures, furloughs, pay cuts, and dividend and buyback suspension in the wake of coronavirus crisis have crippled the auto industry. Discouragingly, the situation is not likely to improve in the near future.
Japanese automaker Honda Motor Co said Wednesday it will extend a shutdown of its Mexican plants through April 30 and plans to furlough most U.S. salaried workers for two weeks as a result of the coronavirus pandemic. Honda began its suspension of operations in North America on March 23 and previously extended its shutdown in Canada and the United States through May 1. The company said the majority of its "salaried and support associates at Honda operations in the U.S. will be furloughed for a two-week period."
Honda Motor Co said it has remodeled 50 of its minivans to transport COVID-19 patients to hospitals and quarantine facilities in Japan, sealing off the rear section of the vehicles to keep drivers safe from infection. The Japanese automaker has placed an airtight divide between the driver and the rear passenger areas of the vans and tweaked their air conditioning systems to enable fresh air to enter through the front near the base of the windshield wipers, pass through to the rear passenger area through vents and exit through the back. The company said that the one-way ventilation system installed in its Odyssey and Step WGN minivan models ensures that air from the rear section does not enter the driver’s space, reducing the risk of infection.
Toyota (TM) pushes back the restart of plants in North America ??? including Canada, Mexico and the United States ??? by an additional two weeks.