Honda Posts Record Quarterly Profit After First-Ever Annual Loss
Honda, Japan's leading automaker, has reported a significant turnaround in its quarterly profits after posting its first-ever annual loss. The company's April-June profit more than doubled to 456.9 billion yen ($2.9 billion), up from 196.6 billion yen for the same period last year.
The surge in profits can be attributed to a 13.5% increase in quarterly sales, which rose to 6.06 trillion yen ($38 billion). Honda's motorcycle operations were particularly lucrative, with strong sales in Brazil and India.
Chief Financial Officer Masao Kawaguchi attributed the company's healthy first-quarter results to a favorable exchange rate and the popularity of its vehicles in key markets such as the US and Japan. However, Honda is still struggling in China, where it is working to offer models that appeal to local buyers.
Honda has abandoned many of its plans for electric-vehicle (EV) models due to consumer reluctance and Trump's policies, which have withdrawn incentives and funding for EV charging stations. The company now expects a return to profit for this fiscal year, raising its profit forecast to 400 billion yen ($2.5 billion) from an earlier 260 billion yen ($1.6 billion).