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TOKYO : Japan's Honda Motor reported Wednesday a small drop in annual profits, snapping a five-year record-breaking streak as it battles tough competition in its home market and in China.
Honda posted net earnings of 592.3 billion yen (US$5.0 billion) for the fiscal year to March, better than its own forecast for a 555 billion yen profit but about 0.8 percent less than the previous year's 597.0 billion.
Operating profit dropped by about two percent to 851.9 billion yen while revenue grew by roughly 12 percent to 11.09 trillion yen.
Honda forecast a further decline in earnings in the current fiscal year to March 2008, when it expects net profit of 575 billion yen and operating profit of 770 billion yen.
The downturn follows five consecutive years of record profits at Honda, which like other Japanese automakers has enjoyed brisk sales in the US market even as local automakers General Motors and Ford struggle. - AFP/ch
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