Honda Motor Co. posted a 314.3 percent increase in net income for the fiscal first quarter ended June 30, 2012 to JPY131.7 billion, compared to JPY31.7 billion in the same fiscal period a year ago. The Japanese carmaker likewise posted a 42.1 percent increase in consolidated net sales and other operating revenue for the fiscal first quarter ended June 30, 2012 to JPY2.44 trillion, compared to JPY1.71 trillion logged in same fiscal period last year.
The company attributed the increase in net sales to increased revenue in automobile business operation, just as the carmaker’s production network rebounded from the effects of the earthquake and tsunami in Japan and the floods in Thailand last year.
The company’s supply has caught up with the demand, allowing it to recover its market share to pre-quake levels in the United States, as shown in industry data. The company’s strong results prompted it to reaffirm its forecasts for the fiscal year ending March 31, 2013 – JPY470 billion of net income from JPY10.3 trillion in net sales.
The carmaker set a global sales target of 4.3 million vehicles for the fiscal year that ends March 31, 2013, up 38.4 percent from the previous year. Honda, however, failed to hit analysts' forecasts for the fiscal first quarter ended June 30, 2012.
Other Japanese companies are also bound to make the headlines for their full year results. According to Japanese press reports, Toyota Motor Corp. is expected to raise its global sales target for 2012, while auto components maker Denso Corp. increased its full-year operating profit forecast by 22 percent.
Christopher Richter of CLSA Asia-Pacific Markets remarked that while Honda posted huge growth and decent margins, it was below what analysts have been expecting. Honda suffered more than its rivals Toyota and Nissan Motor Co. from the natural disasters in Japan and Thailand that affected much of its supply chains.