Honda rises operating profit for first time in six quarters
The automaker raised its full-year profit forecast on the back of hybrid demand and a weaker yen.
Talivio News · Global1 min read
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Honda Motor reported an operating profit of 530.8 billion yen ($3.37 billion) for the April-June period, marking the first profit increase for the company in six quarters.
The result exceeded the 302.1 billion yen median forecast from a poll of nine analysts by LSEG. The company's quarterly revenue also beat estimates.
530.8 billion yen JPY
Honda's operating profit for the April-June period, up from 244.2 billion yen a year earlier.
Honda Motor has raised its full-year operating profit forecast to 650 billion yen, a 30 per cent increase from the previous 500 billion yen projection.
Drivers of growth
The company's quarterly results were influenced by a weaker yen and strong demand in the US for gas-electric hybrids.
A weaker yen and higher material costs linked to the Iran war also helped offset declining global sales for the Japan-based automaker, which is the country's second-biggest automaker.
Updates
Honda's sales revenue for the April-June period rose 13.5% year-on-year to 6.06 trillion yen, with operating profit surging 117.4% from 244.1 billion yen to a historic quarterly high of 530.7 billion yen. While automobile sales fell 6.3% to 786,000 units, motorcycle sales increased 10.1% to 5,663,000 units, leading to a record quarterly operating profit of 233.9 billion yen for the motorcycle segment. Additionally, the company raised its dollar exchange rate forecast from 145 yen to 155 yen and expects electric vehicle strategy changes to incur approximately 520 billion yen in additional costs this fiscal year.
Honda reported its highest quarterly operating profit in history, with April-June operating profit surging 117.4% from 244.1 billion yen to 530.7 billion yen. Sales revenue for the period grew 13.5% to 6.06 trillion yen, while profit attributable to owners rose from 196.6 billion yen to 450.9 billion yen. Additionally, the company increased its dollar exchange rate forecast from 145 yen to 155 yen and expects electric vehicle strategy changes to incur approximately 520 billion yen in additional costs this fiscal year.
Honda's sales revenue for the April-June period rose 13.5% year-on-year to 6.06 trillion yen, while quarterly operating profit surged 117.4% from 244.1 billion to a historic high of 530.7 billion yen. The company also increased its comprehensive net profit forecast for the fiscal year ending March 2027 from 260 billion yen to 400 billion yen and raised its dollar exchange rate forecast from 145 to 155 yen. While automotive sales fell 6.3% to 786,000 units, motorcycle sales grew 10.1% to 5,663,000 units, driving a record quarterly operating profit of 233.9 billion yen in that segment.
Honda's sales revenue for the April-June period grew 13.5% year-on-year to 6.06 trillion yen, while operating profit surged 117.4% from 244.1 billion yen to a record 530.7 billion yen. During this period, profit attributable to owners of the parent rose from 196.6 billion yen to 450.9 billion yen, even as automobile sales decreased by 6.3% to 786,000 units. Additionally, the company raised its dollar exchange rate forecast from 145 yen to 155 yen and increased its comprehensive net profit forecast for the fiscal year ending March 2027 from 260 billion yen to 400 billion yen.
