Honda profit accelerates
Japanese car and motorcycle maker Honda reported an industry-beating increase of just over 1 per cent in its first-half profits to 244.4bn yen (£1.2bn), buoyed by higher global vehicle sales.
Turnover grew by 10 per cent to a record 4.6trn yen, as global vehicle sales rose 6.9 per cent to 1.6m units. The increase in first-half global turnover was driven by a 7.5 per cent rise in sales in America and a 1.7 per cent sales increase in its home market of Japan.
The company said it was doing well in America because of its line-up of attractive models.
The Odyssey people mover, the Civic small car and the Ridgeline pick-up truck all sold well in America, which accounts for 27 per cent of the world market.
The company added, however, that it would probably have to raise its discount budget in the price sensitive American car market, to $1bn (£560m).
For the full year, Honda is now forecasting a net profit of 490bn yen and operating profit of 675bn yen on sales of 9.6trn yen.
These figures are all increases on the company’s previous forecasts of a net profit of 470bn yen and operating profit of 665bn yen on sales of 9.43trn yen.
Honda also boosted its full-year global vehicles sales forecast to 3.425m units from its earlier projection of 3.415m units, and raised its full-year combined sales projection for motorbikes and all-terrain vehicles to 10.57m units from 10.09m.
