Honda Motor has announced its first-quarter results for the period ending June 30, showcasing impressive growth and surpassing market expectations. The following key details highlight Honda’s success during this period:
Net Profit Surges
Net profit for the first quarter more than doubled to 363.07 billion yen ($2.53 billion), a significant increase from the 149.22 billion yen recorded in the previous year. This outcome exceeded the estimated net profit of 232.44 billion yen, as projected by analysts in a Quick poll.
Honda experienced a remarkable 21% surge in revenue compared to the same period last year, reaching 4.625 trillion yen. This surpassed the estimated revenue figure of 4.422 trillion yen, as indicated by the Quick poll.
Stock Split for Broadened Investor Base
Honda plans to split one share into three, with this change taking effect from October 1. The aim of this stock split is to increase the investor base by reducing the minimum investment required to engage with Honda’s stock.
Robust Car Business Performance
The operating profit for Honda’s car business more than quadrupled from the previous year, reaching 176.98 billion yen compared to 38.26 billion yen. This growth was primarily driven by improved sales in North America. Furthermore, the company has resolved the semiconductor shortage issue, which had previously impacted production. In contrast, increased competition in China’s electric vehicle market led to a decline in sales volume in that region.
Motorcycle Business Growth
Honda’s motorcycle business witnessed a significant 47% increase in operating profit compared to the same period last year, reaching 143.52 billion yen. Sales growth in Indonesia and Thailand primarily contributed to this positive outcome. However, sales volume declined in India and Vietnam.
For more details on Honda Motor’s first-quarter results, visit the WSJ website.