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Honda Motor Co forecast profit for the current fiscal year that slightly exceeded analyst projections thanks to a recovery in automobile production, drops in some material prices and robust sales of motorcycles in India and Southeast Asia.
The Japanese automaker also said in a statement that it plans to buy back as much as $1.5 billion yen of its own shares. Operating profit for the period through March 2024 will be ¥1 trillion, the company said. That compares with analysts’ average projection for ¥996 billion. Honda said net sales are on track to reach ¥18.2 trillion, in line with the ¥18.1 trillion the market is looking for.
Honda’s finances have been bolstered by its motorcycle division as it seeks to secure supplies of semiconductors and other materials for automobiles. The company is aiming to only sell electric cars globally by 2040 and have EVs represent 100% of its sales in China by 2035. Despite that, Honda has yet to roll out a mass-market EV, although it is working with Sony Group Corp to launch an electric vehicle under a different brand called Afeela. For the fiscal year ended in March, Honda reported an operating profit of ¥781 billion, falling short
of analysts’ projection for ¥892.5 billion and its own forecast of ¥870 billion. Sales rose 16% to ¥16.9 trillion, compared with analysts’ prediction for ¥17 trillion.