Honda posts a 7% jump in operating profit in the first quarter of 2014

Article by Christian Andrei, on July 31, 2014

Honda Motor Co. posted a 7-percent jump in operating profit in the first quarter ended June 30, 2014 to JPY198 billion ($1.94 billion). The carmaker posted a 20-percent rise in net income to JPY146.5 billion, as well as a 5-percent surge in sales to JPY2.99 trillion. Honda saw its sales in home turf Japan boosted by back-orders from a buying rush preceding a sales tax hike on April 1.

It also saw sales in China, India and Indonesia boosted by model changes. These sales surges were enough to offset slumping sales in Thailand, and dropping demand in the United States. Honda is trying to hike sales in emerging markets to help cut its dependence on North America, which generates nearly half of revenue.

Part of the move was launching cars tailored for China, India and Indonesia, betting the model changeovers will allow it to capture market share from rivals Toyota and Volkswagen.

Kota Yuzawa, an auto analyst at Goldman Sachs Group remarked that India and Indonesia “have been very strong," noting that Honda’s recent aggressive investment in products for these markets are “starting to pay off."

Honda saw its operating profit fall from JPY71.9 billion to JPY67.5 billion in the April-June period. It also saw its sales in the US drop 1 percent in the first six months of 2014, heaved by slower demand for the Accord sedan and Acura models like the ILX and TSX, according to Autodata Corp.

Acura, which became a division with dedicated management and resources in April 1, has been struggling to hike it sales in the US as it chokes from bigger luxury brands.

Acura US chief Mike Accavitti has told Bloomberg that Acura should post better gains from August thanks to the launch of the new TLK sport sedan. Honda has already made the new Fit available in the US since June.

Topics: honda, profit

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016