AP

Japan’s Honda boosts profit despite chips crunch, COVID

Feb 10, 2023, 12:18 AM | Updated: 12:21 am

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.

AP

This satellite image from Planet Labs PBC shows Iran's nuclear site in Isfahan, Iran, April 4, 2024...

Associated Press

Israel, Iran play down apparent Israeli strike. The muted responses could calm tensions — for now

Israel and Iran are both playing down an apparent Israeli airstrike near a major air base and nuclear site in central Iran.

2 hours ago

Speaker of the House Mike Johnson, R-La., talks to reporters just after lawmakers pushed a $95 bill...

Associated Press

Ukraine, Israel aid advances in rare House vote as Democrats help Republicans push it forward

The House pushed ahead Friday on a foreign aid package of $95 billion for Ukraine, Israel, Taiwan and other sources of humanitarian support.

4 hours ago

southern Arizona rancher George Alan Kelly...

Associated Press

Trial of a southern Arizona rancher charged in fatal shooting of unarmed migrant goes to the jury

Closing arguments were made against a southern Arizona rancher accused of shooting an undocumented migrant on his land to death on Thursday.

1 day ago

Donald Trump's hush money trial: 12 jurors selected...

Associated Press

Although 12 jurors were picked for Donald Trump’s hush money trial, selection of alternates is ongoing

A jury of 12 people was seated Thursday in former President Donald Trump's hush money trial. The proceedings are close to opening statements.

1 day ago

A anti-abortion supporter stands outside the House chamber, Wednesday, April 17, 2024, at the Capit...

Associated Press

Democrats clear path to bring proposed repeal of Arizona’s near-total abortion ban to a vote

Democrats in the Arizona Senate cleared a path to bring a proposed repeal of the state’s near-total ban on abortions to a vote.

2 days ago

Most Americans are sleepy new Gallup poll finds...

Associated Press

Most Americans say they don’t get enough sleep, according to new Gallup poll

A new Gallup poll found that most Americans are sleepy — or, at least, they say they are. Multiple factors play into this.

4 days ago

Sponsored Articles

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

...

Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

...

Collins Comfort Masters

Avoid a potential emergency and get your home’s heating and furnace safety checked

With the weather getting colder throughout the Valley, the best time to make sure your heating is all up to date is now. 

Japan’s Honda boosts profit despite chips crunch, COVID