Connect with us

Hi, what are you looking for?

The 2014 Honda Civic/AFP


Honda net profit doubles to $1.56 bn in Q3

The 2014 Honda Civic/AFP

The 2014 Honda Civic/AFP

TOKYO, Jan 31 – Honda said Friday net profit doubled to $1.56 billion in the three months to December, thanks to brisk global sales and a weaker yen.

Net profit for October-December rose to 160.7 billion yen ($1.56 billion), while revenue rose 24.5 percent to 3.02 trillion yen in the quarter.

The results were “mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effects”, the company said.

A sharp decline in the yen this financial year has boosted profitability at major Japanese exporters, including Honda rivals Toyota and Nissan.

For the nine months to December, Japan’s third-largest automaker logged 403.60 billion yen in net profit, up nearly 40 percent from the same period the previous year.

Revenue for the three quarters rose 23 percent, with its sales in North America up 30 percent year-on-year owing to healthy sales of four-wheeled vehicles, it said.

Honda also enjoyed good sales in the motorbike business in Asia, where profit was up more than 50 percent from a year ago.

Recovery in North America’s automobile sales was particularly tangible in the latest three months, with profit up 85 percent year on year, the company said.

“Like other Japanese carmakers, Honda has enjoyed the positive impact of a weak yen for the period. The forex impact is significant,” Tatsuya Mizuno, auto analyst at Mizuno Credit Advisory, told AFP.

“But the weak yen trend appears uncertain now. It will be a major risk element if the trend reverses.”

One negative factor that the Japanese economy is expecting is a consumption tax hike slated for April.

Advertisement. Scroll to continue reading.

“The impact of the consumption tax hike on the industry is quite uncertain. The market is paying close attention to it,” Mizuno said.

Japanese industry has benefited from the big-spending and easy-money policies of Prime Minister Shinzo Abe, with huge easing measures from the premier’s hand-picked team at the Bank of Japan helping push down the currency.

The weaker yen boosts Japanese manufacturers’ bottom line by making them more competitive overseas and inflating repatriated overseas profits.

In the nine months to December Honda’s global motorbike sales rose 8.4 percent, while sales of other vehicles climbed 4.8 percent.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...