Strong domestic sales of the redesigned Fit (Jazz), launched last September, helped boost Honda Motor’s fiscal third quarter operating income 73.2% year on year to JPY228.5bn.
Sales and other revenues rose to JPY3.02 trillion from JPY2.43 trillion a year earlier.
The automaker also cited new model introductions in North America and Asia, and in motorcycle sales in Asia, along with cost reductions and the depreciation of the yen, for the rises.
Net profit for the quarter ended 31 December, 2013 more than doubled to JPY160.7bn ($1.56bn). A Reuters report noted that was back to pre-Lehman crisis levels but lower than analysts’ expectations – the seven Thomson Reuters I/B/E/S polled had estimated an average of JPY172bn. Net profit a year ago was JPY77.4bn.
Honda reported fiscal nine month operating profit up 43.1% to JPY584.9bn and net income up 38.5% to JPY403.5bn on sales of JPY8.7 trillion, up from JPY7.1 trillion a year earlier.
For the fiscal year ending 31 March 2014, Honda maintained its forecast of JPY580bn net profit, below the expectations of JPY 603.4bn in a Thomson Reuters I/B/E/S survey of 20 analysts.
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By GlobalDataThe automaker added that, despite favorable currency movements due to the depreciation of the yen, it was also maintaining previously announced full year forecasts for sales and other operating revenue, and operating income – JPY12.1 trillion and JPY780bn yen, respectively – due to an “anticipated decrease in automobile and motorcycle sales under challenging market conditions mainly in emerging countries”.
It added it had maintained the net income forecast of JPY580bn “due to an expected increase in equity in income of affiliates despite a decrease in other income”.
Quarterly dividend for the third quarter will be JPY20 a share, a 1 yen increase. Forecast total cash dividends for the full fiscal year are JPY80 yen, up JPY4.
Third quarter automobile sales rose to 1,082,000 versus 986,000 a year earlier. The nine month tally was 4,108,000, up from 4,046,000 in 2012.
Reuters also noted that Honda had cut its fully fiscal year global car sales forecast to 4.385m vehicles from 4.43m as sales in Thailand slowed after first car buyer incentives ended.
CEO Takanobu Ito has set an aggressive goal of selling 6m vehicles a year by 31 March 2017, compared with a record 4.01min the year ended March 2013.