TOKYO — Japan’s Honda Motor reported a 78% rise in quarterly revenue on Wednesday, boosted by elevated gross sales, particularly within the North American market, and a weaker yen.
Japan’s second-biggest automaker by gross sales stated its working revenue totaled 394.4 billion yen ($2.76 billion) within the three months by June, handily beating the typical 324.74 billion yen estimate in a ballot of 10 analysts by Refinitiv.
That in contrast with a 222.2 billion yen revenue in the identical interval final yr.
Like different automakers, Honda stated it benefited from robust gross sales to retail prospects in the important thing U.S. market, posting a 44.7% year-on-year bounce to 347,000 models, because the impression of post-pandemic disruptions within the provide of components and chips eases.
That contrasted sharply with a steep 5% drop in gross sales in China to 309,000 automobiles that Honda reported for the quarter, confronted with rising native competitors and a speedy shift to electrical automobiles on the planet’s largest automotive market.
Enterprise situations in China had grown worse for Honda in comparison with when it issued its forecast of promoting 1.4 million automobiles for the complete yr, a Honda official stated.
“We’re nonetheless working amid some restrictions from semiconductors,” the official stated.
“If we had been to revise our gross sales forecast in China, we’ll need to transfer forward with contemplating whether or not we will distribute components to and manufacture extra in different areas.”
Honda maintained its forecast for a 1.0 trillion yen working revenue for the present yr, decrease than the 1.117 trillion yen common forecast from 22 analysts.
The corporate will weigh the necessity for an replace to its full-year outlook together with the advantages it sees from a weakening yen when it publicizes second-quarter outcomes across the begin of November, the official added.
($1 = 143.1200 yen)
(Reporting by Daniel Leussink; Modifying by David Dolan, Chang-Ran Kim and David Evans)