Honda posts quarterly operating profit up 77%

Honda has posted a big jump to operating profit for the quarter ended 30 June (FYQ1) on the back of much higher sales in the US. Operating profit was up 77% to 394.4 billion yen from 222.2 billion yen in the same quarter last year.

Net income for the period was up by 213.8 billion yen to 363 billion yen.

Sales in the US in the quarter were up 45% to 347,000 units as supply problems (due to the global chips shortage) eased and Honda achieved near record average transaction prices on those sales.

Honda operating margin for the quarter was up to 8.5% from 5.8% in the same quarter last year. Besides the big lift to sales in North America – sales in Japan, Europe and China were either slightly down or flat – there was also a currency boost.

The company’s quarterly results were also boosted by higher motorcycle sales in southeast Asia, especially Indonesia.  

Honda kept its FY24 outlook unchanged.