Mexican Media Brands
Honda Raises Outlook as Net Income Jumps 39%
Strong results in July-September have prompted Honda Motor Co. to hike its sales and earnings outlook for the fiscal year ending March 31.
#economics
Share
Strong results in July-September have prompted Honda Motor Co. to hike its sales and earnings outlook for the fiscal year ending March 31.
The company reports sharp increases in quarterly operating profit (+38% to 228 billion yen/$2.2 billion) and net income (+39% to 177 billion yen/$1.7 billion).
Unit sales expanded 7% to 1.22 million vehicles worldwide. But unfavorable currency exchange effects caused revenue to fall 10% to 3.3 trillion yen ($31 billion).
Profits in the fiscal second quarter were aided by Honda’s shift in retirement age to 65 from 60 in Japan, which deferred pension plan payments by 84 billion yen ($800 million). A cost reduction program and lower-than-expected warranty costs contributed another 77.5 billion yen ($738 million).
For the full year, Honda now expects sales revenue will drop 8% to 13.4 trillion yen ($128 billion) from its previous forecast of 14.6 trillion.
But the company says the one-time pension windfall and stronger sales (5 million vehicles compared with 4.9 million) will help raise operating profits 29% to 650 billion yen ($6.2 billion) and net income 21% to 415 billion yen ($4 billion). Honda previously expected a fiscal 2017 operating profit of 600 billion yen and net income of 390 billion yen.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future