Honda Motor boosted operating profit for the fiscal second quarter to 30 September 2012) 92.1% to JPY100.8bn after vehicle sales rose, mainly in North America and Japan, as it finally recovered from the impact of last year’s Japanese earthquake. The automaker also cited strong sales of new models and an increase in motorcycle sales, mainly in India.
Pre-tax profit rose 38.8% to JPY106.2bn and net profit was up 36.1% to JPY82.2bn.
First fiscal half operating income rose a staggering 268.7% year on year to JPY276.8bn while net profit was up 132% to JPY213.9bn.
Nonetheless, Honda has revised down its operating income forecast for the full fiscal year to 31 March, 2013 from the previously announced JPY620bn to JPY520bn citing the impact of anti-Japan sentiment which has recently affected its sales in China, falling sales in Europe and South America “due to changes in the business environment” and “the unfavorable currency effects due to depreciation of local currencies in some emerging countries”.
Honda also cut its full year net profit forecast from JPY470bn to JPY375bn as it expects a decline in its share from affiliates mostly in China.
It will, however, boost Q2 quarterly dividend JPY4 to JPY19 per share while total cash dividends for the full year will be up JPY16 to JPY76.