Honda operating profit up 5.1 % thanks to weaker yen

DPA Updated - July 31, 2013 at 04:38 PM.

Honda Motor Co said on Wednesday its operating profit for the April-to-June quarter rose 5.1 per cent from a year earlier to 185 billion yen ($ 1.89 billion) due mainly to the yen’s depreciation.

The value of sales rose 16.3 per cent to 2.83 trillion yen. Honda however reported a 7 per cent decline in its net profit to 122.5 billion yen for the quarter.

Honda said on Friday its domestic vehicle production fell 40.3 per cent during the first half of 2013 to 350,715 units, while its output in other Asian countries jumped 25.2 per cent to about 651,938.

The carmaker’s shipments from Japan for the same period declined 14.6 per cent to 368,026, Honda said.

Honda maintained its net profit outlook at 580 billion yen and operating profit forecast at 780 billion yen for the financial year to March 2014, while sales were predicted at 12.1 trillion yen.

Shares in Honda closed down 2.16 per cent on Wednesday ahead of the earnings report, which was released after the markets closed.

Published on July 31, 2013 11:06