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Honda announced on Wednesday that its profit for the four months ending in June more than doubled due to strong sales of its automobiles and motorcycles. The Japanese business also benefited from favorable currency exchange rates.
According to Honda Motor Co., its fiscal first-quarter profit increased from 149 billion yen to 363 billion yen ($2.5 billion).
Sales for the third quarter increased 21% to 4.6 trillion yen ($32 billion). The financial services arm of Honda reported increasing sales.
Honda, which produces the Honda e electric car, the Fit subcompact, and the Gold Wing motorbike, said that its profitability increased, particularly in North America where production resumed.
The COVID-19 pandemic’s societal constraints produced production delays that left automakers all around the world struggling to meet demand. However, these limitations have loosened, allowing production to resume.
Due to fierce competition from manufacturers of battery electric vehicles, Honda said that auto sales in China decreased dramatically in the most recent quarter while remaining around the same in Japan compared to the same period last year.
Honda recently stated it is partnering with six other firms in the building of a high-powered charging network across North America, indicating that it is betting on the rise of EVs in the U.S. market.
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Honda claimed that while sales of their motorcycles declined in India due to a scarcity of computer chips, they increased in Indonesia as production increased.
In the most recent quarter, Honda reported selling 901,000 automobiles, up from 815,000 a year earlier. Moreover, it sold more motorcycles globally, rising from 4.2 million to roughly 4.5 million.
Due to the effects of currency exchange rates, Honda saw an increase in its quarterly operating profit of 23 billion yen ($160 million). Japanese exporters benefit from a lower yen, which is now trading at around 143 yen to the U.S. dollar, as it increases the amount of its foreign revenues when translated into yen.
Honda continued to forecast a profit of 800 billion yen ($5.6 billion) for the entire year, up from 651 billion yen in the prior year.
Honda maintained its annual profit prediction of 800 billion yen ($5.6 billion), up from 651 billion yen in the previous year.
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Source: US News
