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
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.
-
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
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.