Honda’s second-quarter and half-yearly financial results to 30 September illustrate the increasing strength of its global motorcycle operations, with unit sales, revenue and profit surging ahead.
In the latest quarter, sales of Honda-branded bikes and ATVs rose by 10.8 per cent to 4.216 million units.
Excluding those produced by joint-venture affiliates, Honda and its direct subsidiaries sold 2.585 million units — a 12.2 per cent increase. Improvement was attributed to growth principally in India (now a direct subsidiary rather than a JV) and Indonesia, but also recovery in Brazil. The European market flat-lined at 38,000 units.
Quarterly revenue from the motorcycle sector grew by 34.9 per cent to £2.65bn. Related operating profit stacked on 79.3 per cent to £288m. Favourable foreign currency translation effects continued to play a significant role in this success.
For the first half of its current 2013/2014 financial year, overall Honda bike and ATV sales are up by 7.2 per cent at 8.27 million units. Resultant revenue for the six-month period climbed by 24.2 per cent to £5.16bn. Operating profit was up by 41.7 per cent to £558m.
Honda is forecasting an 11.8 per cent rise in its worldwide motorcycle sales volume to an all-time record of 17.32 million units for the full year to 31 March 2014.
For Honda Group as a whole, quarterly revenue shot up by 27.3 per cent to £18.32bn. Operating profit increased by 70 per cent to £1.09bn. Net profit improved by 46.4 per cent to £762m. Half-yearly revenue stands at £36.28bn, up by 21.6 per cent. Operating profit has risen by 28.7 per cent to £2.26bn and net profit is up by 13.5 per cent to £1.54bn.