By Kosaku Narioka
Hino Motors shares fell sharply Friday morning after the Japanese truck maker posted a first-quarter net loss due to a special loss related to engine data falsification.
The shares were recently 10% lower at 566.2 yen after falling as much as 11% earlier.
Hino said Thursday after market closed that it posted a net loss of Y16.52 billion ($118.4 million) for the quarter ended June 30, compared with net profit of Y723 million in the year-earlier period.
The maker of trucks and busses said it booked Y13.06 billion special loss to compensate the losses that suppliers and clients suffered as a result of Hino’s falsification of engine performance data and the suspension of sales in Japan of vehicles equipped with certain engines.
Hino also said lower overseas sales volume and higher costs of materials weighed on its earnings. First-quarter revenue increased 4.5% to Y371.91 billion thanks partly to a weaker yen and the resumption of sales of some models in Japan.
The company maintained its earnings forecasts for the fiscal year ending March 2024. It projects revenue will increase 13% to Y1.700 trillion and expects to swing back to a net profit of Y10.00 billion from a net loss the previous fiscal year.
Write to Kosaku Narioka at [email protected]
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