By Kosaku Narioka
Honda Motor Co. announced its third-quarter results on Wednesday. Here’s what you need to know.
NET PROFIT: Honda’s net profit fell 32% from a year earlier to 192.96 billion yen ($1.67 billion) for the quarter ended Dec. 31. That beat the estimate of 137.41 billion yen in an analyst poll by FactSet.
REVENUE: Third-quarter revenue fell 2.2% to 3.689 trillion yen, slightly above the FactSet survey estimate of 3.636 trillion yen.
WHAT WE WATCHED:
–MOTORCYCLE BUSINESS: While operating profit from its automobile business fell, operating profit from its motorcycle business rose 16% from a year earlier to 84.26 billion yen, in thanks in part to sales gains in countries such as Indonesia and Brazil. Still, Honda cut its group motorcycle sales forecast to 17.0 million units for the fiscal year ending in March from its previous view of 17.5 million units, citing weak sales in India. and a shortage of chips.
–OUTLOOK: Honda expects the business environment to remain challenging for the remainder of the fiscal year due in part to chip shortages and rising raw material costs, but says cost control should improve its financial results better than previously thought. Honda expects its fiscal year revenue to rise 10.5% to 14.55 trillion yen, down from the previous forecast of a 10.9% increase, and that the net profit rose 1.9% to 670.00 billion yen, compared with the previous projection of 16% fall.
Write to Kosaku Narioka at [email protected]