Honda logs Q3 net profit of $1.56 billion

Article by Anita Panait, on February 3, 2014

Honda Motor Co. saw its net profit for the quarter ended December 2013 more than doubled to JPY160.7 billion ($1.56 billion), thanks to strong sales of the Fit subcompact that was rolled out in Japan in September. Honda, however, trimmed its vehicle and motorcycle sales forecasts by 1 percent for the fiscal year ending March 2014, no thanks to declining demand in Thailand that offset what has otherwise been a golden year for Japanese corporate earnings that have benefited from the weaker yen.

The carmaker now expects to sell 4.385 million vehicles and 17.32 million motorcycles in the current fiscal year ending March 31. Honda said it is targeting to sell a record 4.5 million vehicles or more in the 2014 financial year.

Honda remarked that its sales plunge in Thailand is likely to continue due to the political turmoil in the country. "Every Japanese carmaker was hurt in Thailand, and so was Honda," said Kota Yuzawa, an analyst at Goldman Sachs Group. "Honda hasn't launched its new hit products in the region so we'll have to wait until next year to see a pickup in volumes."

Honda’s quarterly net income was below than expectations of analysts, but its operating profit (JPY228.6 billion) was higher than the JPY220.4 billion average analyst estimate compiled by Bloomberg. For the year ending in March 2014, Honda still expects to post JPY580 billion in net profit. Honda chief executive Takanobu Ito is targeting to sell 6 million vehicles annually by end-March 2017, compared with 4.01 million units sold in the year ended March 2013.

Honda logged JPY131.1 billion in operating profit last quarter in North America, up from JPY70.89 billion a year earlier. Honda unveiled a revamped Fit at the 2014 Detroit auto show that will be rolled out in North America this year. Honda is counting on the model to capture market share from the Chevrolet Sonic and Ford Fiesta.

Topics: honda, profit

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries