Mexican Media Brands
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.
#economics
Share
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.
RELATED CONTENT
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
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.