Honda's profit rises despite pandemic damageWednesday, February 10, 2021
TO KYO, Japan (AP) — Honda reported yesterday that its fiscal third-quarter profit more than doubled to ¥284 billion (US$2.7 billion) despite the novel coronavirus pandemic as auto sales grew in Japan and the US.
Japanese automaker Honda Motor Corporation had reported a ¥116-billion profit for October-December a year earlier.
Honda's quarterly sales inched up less than one per cent to ¥3.7 trillion (US$35 billion).
Cost cuts also helped boost Honda's bottom line, despite difficulties caused by the pandemic, including computer chip shortages, according to Tokyo-based Honda.
The maker of the Accord sedan, CR-V crossover and Asimo robot said it carried out a major review of its operations to streamline expenses.
Honda said its motorcycle sales slipped in the three months through December to about 3 million motorcycles from 3.1 million units a year ago.
Auto sales held up, increasing slightly to 809,000 vehicles from 808,000 vehicles.
Honda raised its profit forecast for the year through March to 465 billion yen (US$4.4 billion), up from the previous projection for a ¥390-billion (US$3.7 billion) profit.
The latest forecast is also better than the ¥456-billion profit Honda earned the previous fiscal year.
But Honda warned the outlook remains uncertain because the impact from COVID-19 was still unclear.
Japanese rivals Nissan Motor and Toyota Motor corporations also reported earnings this week.
The pandemic has affected industries, companies and regions differently — mostly negatively.
But some companies, including Honda, have proved resilient, holding better than others.
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