Honda Motor Posts FY 2023 Operating Profit of ¥839.3B

Honda Motor Company (Tokyo 7267) said in Japan today that notwithstanding mounting headwinds, including decreases in automobile production and sales due to COVID-19 in China, the semiconductor supply shortage, increased costs from higher raw material prices and the impact of inflation, it posted an operating profit ¥839.3 billion ($5.91B). This came from pricing that “reflects increased product value, an increase in motorcycle unit sales, and favorable currency effects.”

Revenue at ¥16.908 billion increased 16% year-over-year (YoY).* Net profit for Q4 of the Japanese fiscal year ending 31 March fell to ¥112.0 billion ($833.6 million) from ¥124.8 billion YoY. Fourth-quarter revenue rose 13% YoY to ¥4.384 trillion.

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Honda forecasts that group car sales will rise to 4.4 million units for the 2024 fiscal year that began in April from 3.7 million units sold in FY 2023. Honda also forecast an increase in group motorcycle sales from 18.8 million to 19.2 million motorcycles. Honda forecast FY 2024 full-year operating profit rising to ¥ 1.0 trillion ($7.40 billion).

In a related announcement, Honda and GS Yuasa International Ltd. (GS Yuasa) today also announced that they have signed a joint-venture agreement toward the establishment of a new company for high-capacity, high-output lithium-ion batteries, mainly for EVs. (AutoInformed: EV Battery Gold Rush – Honda and GS Yuasa JV Announced).

The new joint venture company will be named Honda GS Yuasa EV Battery R&D Co., Ltd. It will research and develop lithium-ion batteries and battery production methods that it is claimed will be highly competitive at a global level. The new company is scheduled to be established and begin operation before the end of 2023. The establishment of the new company and the start of its operation are subject to the approvals of the relevant authorities.

*Honda for financial data used $1 = ¥ 135.05.