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Honda’s Net Income Drops 7%
Honda Motor Co. boosted revenue 16% to 2.83 trillion yen (€21.6 billion) in its fiscal first quarter ended June 30.
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Honda Motor Co. boosted revenue 16% to 2.83 trillion yen (€21.6 billion) in its fiscal first quarter ended June 30. But car sales were virtually flat at 858,000 vehicles, and net income fell 7% to 122 billion yen (€932 million).
Honda says its profits were hurt by higher spending on product development, new-plant launches and a less profitable mix of vehicles in North America, where sales rose 2%, and Japan, where demand plunged 24%.
Quarterly operating profit rose 5% to 185 billion yen (€1.4 billion). Results were bolstered by cost cutting, favorable exchange rates, an upswing in motorcycle sales in Asia and stronger demand for its cars everywhere except Japan, according to the company.
Global sales of Honda's motorcycles and ATVs advanced 4% to slightly more than 4 million units. But demand for its power products slipped 2% to 1.6 million units.
Honda predicts stronger results over the next nine months. The company expects its full-year net income to surge 58% to 580 billion yen (€4.4 billion) as revenue climbs 22% to 12 trillion yen (€92 billion).
The company reiterates that it expects full-year sales of its cars and motorcycles to rise 10% to 4.43 million units and 12% to 17.4 million units, respectively.
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