High trade in values bolstered by high used car prices contributed to strong U.S. retail sales during the quarter. The CR-V and Accord remain in short supply.
Honda Motor Company’s net profit rose 36% to ¥82 billion or ~$1 billion in the Japanese fiscal year Q2 that ended 30 September the company said in Tokyo. An average ¥79:$1 was attained during the quarter. Honda sold 3.9 million motorcycles, 1 million automobiles, and 1.3 million power products during Q2. Promotional and startup costs for the new Accord, which just went on sale in the U.S., and a government prodded Chinese boycott of Japanese cars because of a territorial dispute over some islands, cut the results.
Japan’s third largest automaker revised its forecast downward by 20% to ¥520 billion operating income for the current fiscal year ending 31 March 2013, saying things likely won’t improve in China, the world’s largest auto market until next February. The net income forecast was also reduced from the previously announced ¥470 billion to ¥375.0 billion.
Honda’s strong recovery continues in spite of some regional problems in Europe and China.
Honda Motor also said that, a decline in sales in Europe and South America due to changes in the business environment, and unfavorable currency effects due to depreciation of local currencies in some emerging countries are also hurting earnings.
Nevertheless the quarterly dividend for the current fiscal second quarter will be ¥19 yen per share, a ¥4increase compared to the quarterly dividend for the same period last year. Total cash dividends to be paid for the fiscal year ending 31 March 2013 are planned to be ¥76 per share, an increase of ¥16 yen per share from the previous fiscal year.
