Honda Motor group net profit surged in the April-June quarter to JPY131.72bn, over four times more than the year before, boosted by brisk car sales in major global markets.
For the three-month period, the automaker reported an operating profit of JPY176.01bn, nearly eight times more than the previous year, on sales of JPY2.44 trillion, up 42.1%, indicating a recovery from the supply chain disruptions triggered by the earthquake and tsunami disaster in Japan last year, Kyodo News reported.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Honda sold 999,000 cars in the first quarter, up 59.8%, with North America accounting for 450,000 vehicles and Japan 185,000.
Referring to the robust sales in Japan amid a government subsidy programme for promoting eco-friendly vehicles, Honda executive vice president Tetsuo Iwamura told the Japanese news agency there would be a backlash when the subsidy runs out but added he is more concerned about the country’s multiple taxes on automobiles.
“The basic problem the automakers face is the auto-related taxes… We ask the government to seriously consider abolishing those taxes,” Iwamura said.
Honda did not revise its earnings outlook for the full business year ending next March, noting uncertainties regarding the course of the global economy amid European sovereign debt problems as well as the strong yen.
It forecast a group net profit of JPY470bn and an operating profit of JPY620bn on sales of JPY10.3 trillion for the full year.
Honda said it plans a dividend of JPY76 for the full year, up from JPY60 last year.
