Despite a slight increase in volume sales, Honda’s motorcycle business has suffered stagnant revenue and falling profitability in the past 12 months, according to full-year and fourth-quarter financial results to 31 March 2013.
Annual bike and ATV sales volume grew by 2.9 per cent to 15.494 million units. But resultant revenue slid marginally by 0.7 per cent to £8.8bn. Operating profit from the sector dropped by 22.7 per cent to £724m.
In the final January-March quarter, global sales volume declined by 4.9 per cent to 3.962 million units while revenue increased by 4.7 per cent to £2.47bn, as favourable foreign currency translation effects had an impact. However, operating profit was down by 23.2 per cent to £166m.
Honda’s only upbeat market in volume terms during the quarter was North America with a 30.2 per cent improvement to 69,000 units. Europe dropped by 10.3 per cent to 52,000 units. And although gains in India continue to bolster its Asian performance, falling bike sales in Indonesia and Vietnam dragged Asia down by 2.5 per cent to 3.363 million units. Brazil was the major culprit in a 22.2 per cent retreat in “other regions” to 428,000 units.
On the bright side, impressive recovery in the company’s big-ticket car operations meant Honda as a whole had a glittering year. Revenue for the 12 months was up by 24.3 per cent to £64.88bn. Operating profit skyrocketed by 135.5 per cent to £3.58bn. Net profit climbed by 73.6 per cent to £2.41bn.
On that basis, motorcycles were responsible for only around 13 per cent of Honda’s overall annual turnover and about 20 per cent of profit at an operating level.