Honda said this morning in Japan that it reached an operating profit in FY24 that was an historical high of $7 billion (¥1 trillion 381.9 billion) Honda is Japan’s second largest automaker. Sales increased $131,000,000 during the fiscal year. Sales revenue, profit before income taxes and profit for the year attributable to owners of the parent all reached record highs. Furthermore, ROIC was 9.1% and ROE was 9.3%.

“In FY25, we will steadily proceed with dedicating resources towards electrification and aim to achieve operating profit of ¥1 trillion 420 billion and an operating profit margin of 7%, which is one year ahead of our original target,” said Toshiro Mibe, Director, President and Executive officer. He was the first Honda chief executive in history to attend the annual results conference. Normally, the finance staff conducts it with regional operating officers.

“Also, in FY24, cash flows from operating activities excluding research and development expenses, which indicates the source of future investment, increased by ¥1 trillion from the previous fiscal year to approximately ¥3 trillion. We believe that we have built a foundation to support investment for future growth. Regarding shareholder returns, we consider this to be an issue of utmost importance for management,” Mide said.

This likely is the reason for his attendance, one that he said he will continue on an annual basis. Honda – as with all global automotive companies is trying to balance returns with the investments need to assure their continuance. Consider that Toyota spends $1,000,000 an hour on Research and Development.