Tuesday, September 1st15.2°C
26774
26753

Honda's third quarter profit doubles year-on-year due to strong global sales, weak yen

TOKYO - Honda's quarterly profit doubled from a year earlier as sales got a big perk from a weak yen.

Honda Motor Co. reported on Friday a 160.7 billion yen ($1.58 billion) net profit for the October-December fiscal third quarter, up from 77.4 billion yen the year before.

The maker of the Fit subcompact, Odyssey minivan and Asimo humanoid, posted a 25 per cent jump in quarterly sales to 3.02 trillion yen ($29.6 billion).

A favourable exchange rate helped Honda's fortunes. The dollar has been trading above 100 yen compared with about 80 yen a year earlier. A weak yen helps lift the value of Japanese exporters' overseas revenue.

About 425 billion yen ($4.2 billion) of Honda's sales and other operating revenue was due just to a favourable currency for the quarter.

Honda stuck to its previous forecast for a 580 billion yen ($5.7 billion) profit for the fiscal year through March 31, 2014, up 58 per cent from the previous fiscal year, on 12.1 trillion yen ($118.6 billion) sales, up nearly 23 per cent.

Tokyo-based Honda, like other Japanese automakers, has bounced back from troubled years, such as the 2011 tsunami and earthquake in northeastern Japan that devastated parts suppliers and disrupted production.

Honda was also hurt by flooding in Thailand in late 2012. Anti-Japanese sentiment that flared up in China eroded sales in that key growth market last year.

Honda said its results were helped by cost cuts and the launch of new models, in addition to the help it got from a weak yen. It sales grew in North America, Japan and the rest of Asia.

During the quarter, Honda sold 1.08 million vehicles around the world, up nearly 10 per cent from a year earlier. It also reported an 11 per cent jump in motorcycle sales.

It expects to sell nearly 4.39 million vehicles for the fiscal year through March 2014, up 9 per cent from 4.01 million in the previous year. Although upbeat, that's lower than its earlier forecast of 4.43 million vehicles, as it expects fewer sales in North America, Asia and Europe.

For the nine months through December 2013, Honda's net profit gained nearly 39 per cent to 403.5 billion yen ($4 billion). Nine-month sales soared 23 per cent to 8.75 trillion yen ($86 billion).

Toyota Motor Corp., the world's top automaker, reports earnings Tuesday, while Nissan Motor Co. reports Feb. 10.

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

The Canadian Press


Read more Business News

27613


Recent Trending




Today's Market
S&P TSX13481.90-377.22
S&P CDNX547.97-11.51
DJIA16058.35-469.68
Nasdaq4636.10-140.40
S&P 5001913.85-58.33
CDN Dollar0.7551+0.0006
Gold1136.20-2.50
Oil44.42-0.99
Lumber233.50-1.50
Natural Gas2.674-0.028

 
Okanagan Companies
Pacific Safety0.175-0.010
Knighthawk0.010.00
QHR Technologies Inc1.18-0.05
Cantex0.04-0.01
Anavex Life Sciences1.32-0.03
Metalex Ventures0.05-0.00
Russel Metals21.21-0.90
Copper Mountain Mining0.62-0.01
Colorado Resources0.085+0.010
ReliaBrand Inc0.0045+0.0005
Sunrise Resources Ltd0.015-0.005
Mission Ready Services0.085+0.000
Decisive Dividend Corp2.50-0.25

 



27504

FEATURED Property
2372044110-1420 Terai Road
2 bedrooms 3 baths
$299,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Agree to ask questions

Photo: Thinkstock.comThe STORY: I think, said Janet to herself, that I just figured out a solution to my problem of letting the prospect run the meeting.With that thought in mind, she got out of her c...


Your business is not a bank

Photo: Thinkstock.comYour plumbing business is not a bank. But when you are giving terms to customers that exceed what you get from your suppliers, you become one. And every time that someone does not...


Begin with the end in mind

Photo: ContributedWe humans love our dates: birthdays, anniversaries, 9/11, the Ides of March - our lives are intimately woven within the tapestry of the calendar. So it should come as no surprise whe...

_








Member of BC Press Council


25646