On August 9, Japan's Honda Motor Co. announced that its operating profit in the first quarter of fiscal 2023 (ending March 2024) increased by 77.5%, to a record high of 394.45 billion yen ($2.8 billion), thanks to strong growth in car sales, mainly in the North American market.
Honda's net profit doubled to 363.07 billion yen ($2.5 billion), while revenue rose 20.8 percent to 4.62 trillion yen ($32.2 billion).
Honda's chief financial officer Masaharu Hirose said the North American auto industry is recovering, with demand still growing faster than supply. Honda sold 901,000 vehicles worldwide in the first quarter, up 10.6% from the same period in 2022. Of those, 393,000 were sold in North America, up from 267,000 in the same period in 2022, thanks to a recovery in semiconductor supply.
Honda announces record profits. Photo: Reuters |
However, Honda maintained its global sales target for the year at 4.35 million units. Mr. Hirose said the economic environment in North America remains uncertain, citing the collapse of regional US banks, so Honda will closely monitor the situation.
In contrast, car sales in China fell due to fierce competition from electric vehicles, as well as concerns about the country's economy, although Honda said the situation was still within its forecast.
Honda said that although the weakening of the yen against a range of other global currencies will contribute to increased profits, it wants long-term stability in exchange rates.
VNA
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