Honda sees growth in income

Honda Motor Company’s consolidated operating income for the 2013 fiscal year (1 April 2012 - 31 March 2013) amounted to 544.8 billion yen (£3.58b), an increase of 135.5% compared to the previous fiscal year.

This is due primarily to a significant increase in automobile sales, up 900,000 units to just over four million vehicles, led by strong growth in North America, Asia and Japan as a result of recovery from the impact of the Great East Japan Earthquake, major flooding in Thailand and the success of new model introductions. An increase of motorcycle sales globally of 430,000 units has further supported this growth.

Consolidated net income for the fiscal year amounted to 367.1 billion yen (£2.4b), an increase of 73.6% compared to the previous fiscal year.
                                           

Honda's financial forecasts for the fiscal year ending 31 March 2014 are optimistic, with an increase to 780 billion yen (£5.12b) income before tax, which represents a 59.5% increase on the 2013 financial year. This is based on the assumption of the average currency exchange rates of JPY 95 = USD 1 and JPY 120 = Euro 1 for the fiscal year.

Honda continues to display a solid performance globally with a positive sales increase across its automobile, motorcycle and power equipment product ranges during the last year, aided by the introduction of new and successful models to the product line-up, return to full recovery following the Japanese Earthquake and Thailand flooding natural disasters, as well as more favourable exchange rates.

In Europe, although market conditions remain challenging, Honda in Europe has recorded an encouraging sales start to 2013 with a 16.3% increase in sales of cars alone, compared to 2012, following solid customer demand for the recently introduced new CR-V and economical 1.6 ‘Earth Dreams' diesel Civic models.