Japan’s Honda boosts profit despite chips crunch, COVID

Feb 10, 2023, 12:18 AM | Updated: 12:21 am
A man walks in the rain near the logo of Honda Motor Company in Tokyo, on May 13, 2022. Honda repor...

A man walks in the rain near the logo of Honda Motor Company in Tokyo, on May 13, 2022. Honda reported a 27% jump in its October-December profit, despite headwinds like shortages of computer chips and rising costs of raw materials. (AP Photo/Eugene Hoshiko)

(AP Photo/Eugene Hoshiko)

TOKYO (AP) — Honda reported a 27% jump in its October-December profit, despite headwinds like shortages of computer chips and rising costs of raw materials.

Tokyo-based Honda Motor Co.’s profit in the last quarter totaled 244.6 billion yen ($1.9 billion), up from 192.9 billion yen the year before.

Quarterly sales rose 20% to 4.4 trillion yen ($33.5 billion), as Honda sold more motorcycles around the world, compared to a year ago, while vehicle sales were little changed.

By region, Honda sold more vehicles in Japan and the U.S., but sales declined in China and other parts of Asia. Motorcycle sales grew across all major markets, including Japan, North America and the rest of Asia, especially Indonesia, India and Vietnam.

Like other automakers, including Japanese rivals such as Toyota Motor Corp., Honda is stepping up in the push to offer more electric vehicles, as concerns grow about the environment and climate change.

The maker of the Accord sedan, Asimo robot and Gold Wing motorcycles has promised to launch 30 EV models globally by 2030.

Honda is promising a range of models, from tiny vans to muscular sportscars. It’s especially aggressive in model offerings in China, where Honda is a strong brand.

The company is also going electric in motorcycles, introducing such products in Europe and China before a global rollout.

Honda was hurt by the shortage of computer chips and by pandemic-related disruptions in China, Eiji Fujimura, who oversees accounting at Honda, told reporters.

The war in Ukraine and other developments that have sent raw material costs and energy costs higher have also battered the bottom line of the world’s automakers.

But Honda was helped by favorable currency fluctuations, expecting that to add 269 billion yen ($2 billion) to its operating profit for the full fiscal year through March.

A weak yen boosts the earnings of Japanese exporters like Honda when translating overseas revenue into yen. The U.S. dollar was trading at about 115 yen a year ago. It rose as high as 150 yen over the past year and is trading at about 130 yen lately.

Honda stuck to its full year profit forecast at 725 billion yen ($5.5 billion), an improvement from 707 billion profit the previous fiscal year. It lowered its vehicle sales forecast to 3.85 million vehicles from an earlier 4.1 million. Honda sold 4.07 million vehicles the previous fiscal year.

Honda raised its motorcycles sales forecast for the fiscal year to 18.7 million, better than an earlier projection for 18.43 million motorcycles, and the 17 million motorcycles sold the previous fiscal year.


Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Haitian migrant Gerson Solay, 28, carries his daughter, Bianca, as he and his family cross into Can...
Associated Press

US, Canada to end loophole that allows asylum-seekers to move between countries

President Joe Biden and Canadian Prime Minister Justin Trudeau on Friday announced a plan to close a loophole to an immigration agreement.
3 days ago
Expert skateboarder Di'Orr Greenwood, an artist born and raised in the Navajo Nation in Arizona and...
Associated Press

Indigenous skateboard art featured on new stamps unveiled at Phoenix skate park

The Postal Service unveiled the “Art of the Skateboard" stamps at a Phoenix skate park, featuring designs from Indigenous artists.
3 days ago
(Facebook Photo/City of San Luis, Arizona)...
Associated Press

San Luis authorities receive complaints about 911 calls going across border

Authorities in San Luis say they are receiving more complaints about 911 calls mistakenly going across the border.
9 days ago
(Pexels Photo)...
Associated Press

Daylight saving time begins in most of US this weekend

No time change is observed in Hawaii, most of Arizona, Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam and the Northern Marianas.
17 days ago
Mexican army soldiers prepare a search mission for four U.S. citizens kidnapped by gunmen in Matamo...
Associated Press

How the 4 abducted Americans in Mexico were located

The anonymous tip that led Mexican authorities to a remote shack where four abducted Americans were held described armed men and blindfolds.
17 days ago
Tom Brundy points to a newly built irrigation canal on one of the fields at his farm Tuesday, Feb. ...
Associated Press

Southwest farmers reluctant to idle farmland to save water

There is a growing sense that fallowing will have to be part of the solution to the increasingly desperate drought in the West.
24 days ago

Sponsored Articles

(Photo: OCD & Anxiety Treatment Center)...

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.
Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.
Quantum Fiber

How high-speed fiber internet edges out cable for everyday use

In a world where technology drives so much of our daily lives, a lack of high-speed internet can be a major issue.
Japan’s Honda boosts profit despite chips crunch, COVID