Honda returns to profitability after pandemic recovery

April and June. “Honda returned to profitability in June and June with a profit of 222.5 billion yen (USD 2 billion), as the Japanese carmaker’s net profit was boosted by higher sales and lower costs.

In the same period last year, Honda Motor Co. posted a loss of ¥80.8 billion as a coronavirus pandemic paralysed the entire car industry.

“Honda’s quarterly sales reached 3.6 trillion yen (USD 33 billion), up almost 69% from a year ago, as global car sales in North America recovered. Motorcycle sales rose strongly in India and Indonesia.

The Tokyo-based maker of CR-V SUVs, Odyssey minivans, Gold Wing motorcycles and Asimo robots said Honda’s financial services improved due to higher used car prices, while aircraft operations suffered.

“Honda raised its profit forecast for the year to March 2022 to 670 billion yen (US$6.1 billion), up from a previous forecast¬†of 80 billion yen (US$734 million) on higher sales and lower costs.

However, it slightly lowered its car sales forecast for the financial year from 5 million to 4.85 million cars. The new lower figure is still better than the 4.5 million cars that Honda sold in the previous financial year to March.

In the April-June period, 998,000 vehicles were sold compar

ed to 792,000 in the same period last year.

“Honda’s results show that Japanese carmakers, affected by the coronavirus pandemic and the global semiconductor shortage, are recovering.

Earlier on Wednesday, Toyota Motor Corp. reported a record profit of 897.8 billion yen (US$8.2 billion) in the first quarter of the fiscal year, more than five times higher than last year.