Honda swings to big quarterly operating profit

Honda has swung to a quarterly profit as it benefited from higher volumes in recovering vehicle markets.

Honda posted a quarterly (quarter ended 30th June) operating profit of 243.2 billion yen versus a 113.7 billion loss last year, as car sales recovered from the impact of the COVID-19 pandemic.

Honda’s consolidated sales revenue for the three months ended June 30, 2021 increased by 68.7%, to JPY 3,583.8 billion from the same period last year, due mainly to increased sales revenue in all business operations. Operating profit was 243.2bn yen, an increase of JPY 356.9 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue and model mix.

Like other vehicle manufacturers reporting results, it said the outlook remains uncertain due to the impact of the pandemic and semiconductors shortages in several markets. Nevertheless, it raised its forecast operating profit for the current fiscal year by 120bn yen to 780bn yen, due to increased unit sales and a ‘positive effect of the initiatives [cost reduction] to solidify existing businesses’.

Sales revenue for the year was projected at 15.45 trillion yen – 17% up on the previous forecast.