Monday, September 22nd15.7°C
23284
22754

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




Recent Trending




Today's Market
S&P TSX15131.14-134.21
S&P CDNX936.31-18.75
DJIA17200.62-79.12
Nasdaq4518.431-61.358
S&P 5001993.39-17.01
CDN Dollar0.9080-0.0044
Gold1219.50+2.90
Oil91.64-0.77
Lumber326.50-2.50
Natural Gas3.889-0.014

 
Okanagan Companies
Pacific Safety0.16-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.32-0.05
Cantex0.05-0.01
Anavex Life Sciences0.22-0.003
Metalex Ventures0.05-0.01
Russel Metals35.64-0.11
Copper Mountain Mining2.41-0.25
Colorado Resources0.175+0.01
ReliaBrand Inc0.0163-0.0086
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.275-0.015

 



23226

FEATURED Property
20682461821 Shaleridge Place
3 bedrooms 6 baths
$1,795,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Is this a fair offer from ICBC?

“Is this a fair offer from ICBC?”…. “How much should I settle for?”… “What is my claim worth?” These are just some of the questions I regularly get as...


Disruptive innovation

Last night I was privileged to be able to speak at the Greater Westside Board of Trade business awards dinner. Photo: ContributedI talked about Innovation and Collaboration which are two very interes...


Executors and their duties

There will be a time when you will need to decide who you should appoint as executor of your Will. As well, there may be a time when you will be asked by someone to act as the executor of his or her W...

_



23499

23499


Member of BC Press Council


22707