New Delhi: Honda Motor Company on Wednesday reported a consolidated operating profit of JPY 222.2 billion (a year-on-year decrease of JPY 20.9 billion), in Q1 FY23. Meanwhile, the consolidated profit for the fiscal first quarter attributable to owners of the parent amounted to JPY 149.2 billion (a year-on-year decrease by JPY 73.2 billion), due to a decrease in the share of profit of investments accounted for using the equity method in China.
The company reported sales revenue of JPY 3,829.5 billion (a year-on-year increase of 6.9%). Although automobile sales decreased, consolidated sales revenue experienced a year-on-year increase due primarily to an increase in motorcycle sales and favourable currency effects.
The sales revenue for the motorcycle business stood at JPY 676.0 billion (a year-on-year increase of 30.5%), an increase due primarily to a sales increase in Asia and favourable currency effects.
For the automotive business, the sales revenue stood at JPY 2,328.1 billion (a year-on-year increase of 3.4%). Although sales decreased mainly in North America, sales revenue experienced a year-on-year increase due primarily to favourable currency effects.
However, announcing the forecasts for the fiscal year ending March 31, 2023 (FY23), Honda expects sales revenue of JPY 16,750 billion with an operating profit of 830 billion yen.
Honda will acquire its own shares, with the maximum acquisition amount of JPY 100 billion, mainly for improving the efficiency of its capital structure and implementing a flexible capital strategy.
Also Read:
All in all, Continental still anticipates consolidated sales for the year as a whole of around EUR 38.3 to EUR 40.1 billion and an adjusted EBIT margin of around 4.7 to 5.7%. This includes additional costs of EUR 3.5 billion as a result of the massive price increases for raw materials, semi-finished products, energy and logistics. The freight costs for a standard overseas shipping container have in some cases increased eightfold.