Daily Management Review

Honda's second-quarter operating profit up 16 percent


Today, Honda Motor Co. stated that its Q2 operating profit increased by 16%, falling short of analysts' projections. Higher pricing and a weaker yen aided growth; however a lack of semiconductors had an impact on output.

Steve Maw
Steve Maw
In contrast to the average projection of 243.3 billion yen made by the ten experts surveyed by Refinitiv, the Japanese corporation reported an operational profit of 231.2 billion yen ($1.59 billion) for the three months that ended in September.

The amount was 198.9 billion yen a year ago.

Honda increased its operating profit expectation from 830 billion yen to 870 billion yen for the fiscal year ending March 31, primarily as a result of the depreciating yen. 24 analysts have predicted 922.05 billion yen on average.

Due to COVID-19 outbreaks and chip shortages, the manufacturer had to sequentially reduce car output at two Japanese plants. Vezel crossovers, Stepwgn minivans, and the compact Civic model production were also impacted.

Honda's global production decreased 6.1% in the first half of the fiscal year, although production in Japan increased 5.5%.

source: reuters.com