Honda revealed that its quarterly operating profit has more than doubled, thanks to the recovery in its production after having suffered from the various natural disasters in 2011 and the record strength of the yen. Moreover, it estimates a near-tripling of operating profit in the upcoming year, helped by rising sales in Asia and a recovery in the United States.
Specifically, Honda posted an operating profit of 111.98 billion yen or $1.4 billion for the first three months ended March, an increase from the 46.21 billion yen it achieved in the same period last year. Net profit also increased 60.7% from 44.5 billion yen last year to 71.59 billion yen, which includes earnings made in China.
The results concluded a five-quarter drop in operating profits for Honda, which is the No. 3 vehicle manufacturer in Japan. The company was adversely affected more than its competitors Nissan and Toyota from the natural disasters in Thailand and Japan last year. Honda was the last Japanese automaker to have its supply chain back to normal after the massive earthquake and tsunami in Japan in March 2011.
It only resumed work at its Thai vehicle facility at the end of March this year, after a break of six months following the massive floods in October. Executive Vice President Tetsuo Iwamura disclosed that Honda is aiming to regain a market share of at least 10 percent in the United States as soon as possible. The U.S. is its largest and most profitable market. The total U.S. market will likely increase to 14.3 million units in 2012, an increase from the 13.5 million seen at the end of last year, Iwamura noted.