While already on a growth curve, as evidenced by healthy first-quarter results to the end of June, the world’s biggest motorcycle manufacturer is hedging its bets with almost non-existent full-year forecasting. BDN financial editor Roger Willis reports.
A flying Q1 start for Honda was led by especially sound figures. Worldwide motorcycle business revenue in the period neatly added 12% to £4.125bn. Operating profit rocketed upwards by 46.7% to £781.9m. Operating margin rose to 19% from 14.5%.
Global wholesale volume put on 5.2% to 4.473 million, an additional 222,000 units. Asia dominated, of course, 5.5% up to 3.781 million. But progress was hindered to some extent by a localised semiconductor supply shortage at Honda’s wholly-owned HMSI subsidiary in India, where volume was reduced by 4.3% to 952,000. Vietnam, impacted by a recession, was also in arrears by 4.9% at 506,000. However, Thailand climbed by a useful 18.3% to 395,000 and Indonesia recovered tremendously, 63% up to 1.115 million.
Other emerging regions in total were 5.7% down to 395,000. Among them, Brazilian sales emanating from Honda’s Latin American manufacturing hub at Manaus in the Amazon basin fell by 1.4% to 271,000.
Developed markets were all positive. European sales surged by 46.9% to 119,000. North America was 9.1% up to 120,000. The Japanese domestic contribution improved by 3.6% to 58,000.
Highlighting what it considers to be key products, Honda’s results presentation featured the XL750 Transalp, a global model launched sequentially from Europe since April. And it is already perking up the Indian market in Q2 with a new Dio125 scooter rolled out in July. Inevitably, the brand’s first mass-market electric PTW got a mention too. This EM1e scooter will reach Japanese dealers in August, before distribution in Europe and Indonesia.
On the subect of full-year motorcycle business outlook, money was entirely absent. Honda simply reiterated fairly conservative unit sales growth projections, made after the end of its last fiscal year. Overall numbers will hopefully rise by 2.3% to 19.180 million, some 423,000 more machines. Asia should be 1.7% up to 16.375 million. Europe is targeting a 25.4% improvement to 435,000 and North America looking at a 2.4% boost to 470,000.
Yen-Sterling currency translation at forex rates applicable on 10 August.