Honda’s Net Profit Falls 29%
Honda Motor Co.’s adjusted net profit dropped 29% to 172 billion yen ($1.6 billion) in the fiscal first quarter ended June 30.
The company’s operating profit for the period fell 16% to 252 billion yen ($2.4 billion) as demand for motorcycles fell 8%. Consolidated revenue dipped less than 1% to 4 trillion yen ($37.5 billion).
Honda’s automotive business saw quarterly revenue decline 3% to 2.8 trillion yen ($25.8 billion) in April-June. Global vehicle sales rose 1% to 1.32 million units, thanks to gains in Japan and Asia. Unit sales in the U.S. declined 4% to 407,000 vehicles.
First-quarter automotive segment profit fell 21% to 120 billion yen ($1.1 billion), according to the company.
Honda lowered its estimated global passenger vehicle sales through March 2020 by 1% to 5.11 million units, compared with last year’s record 5.32 million units. But the company confirms its forecast for an operating profit of 770 billion yen ($7.2 billion).
Honda said in May that its goal is to lower production costs 10% by 2025, largely by reducing its array of region-specific model variants.
Chinese electric-car startup Nio Inc. is forming a manufacturing joint venture with Beijing E-Town International Investment and Development Co., which is investing 10 billion yuan ($1.5 billion) in the business.
Delegates to the United Auto Workers union’s annual convention in Detroit have overwhelmingly approved a 31% raise for their salaried international leaders.
According to Sandor Piszar, Chevrolet truck marketing director, “We engineer and build our trucks with customers’ expectations in mind.”