Honda posts 16% rise in Q2 revenue and hikes outlook as bikes, yen assist

TOKYO — Japan’s Honda Motor Co posted on Wednesday a 16% rise in second-quarter revenue and lifted its full-year outlook, as higher pricing, sturdy gross sales of bikes and a weak yen helped it trip out semiconductor shortages.

Whereas Japanese automakers, like lots of their abroad rivals, have been hit by shortages of chips and provide chain snarls, Honda has been helped by strong efficiency in its bike enterprise, significantly in Asia.

The corporate additionally mentioned it was helped by pricing that mirrored its “elevated product worth” and by lowering shopper incentives.

The automaker raised its forecasts “to mirror our efforts to additional enhance profitability, greater vehicle gross sales quantity and the influence of the yen’s depreciation”, Honda Govt Vice President Kohei Takeuchi informed a outcomes briefing.

Nonetheless, he famous there have been loads of pressures, together with inflation.

Working revenue totaled 231.2 billion yen ($1.59 billion)within the three months to end-September, wanting the typical estimate of 243.3 billion yen in a ballot of 10 analysts by Refinitiv. The identical interval a yr earlier, the corporate earned 198.9 billion yen.

Honda raised its full-year working revenue forecast to 870 billion yen from 830 billion yen for the yr ending March 31 primarily helped by weak yen. That compares with a 922.05 billion yen common forecast by 24 analysts.

The automaker was compelled to persistently lower automobile manufacturing at two home factories as COVID-19 outbreaks and semiconductor shortages triggered delays in components shipments. Manufacturing of its Vezel sport-utility automobile, Stepwgn minivan and Civic compact automobile had been all hit.

Its world automobile manufacturing for the primary six months of the monetary yr was down 6.1% yr on yr whereas home manufacturing was up 5.5%.

($1 = 145.7500 yen)

(Reporting by Satoshi Sugiyama; Modifying by David Dolan and Muralikumar Anantharaman)