Despite headline global sales volume growth in its first fiscal quarter to 30 June, Honda’s motorcycle operations were unable to cash in, reports BDN financial editor Roger Willis. Principal culprit was an earthquake in early April that knocked out the brand’s Kumamoto factory — where high-end export products like the best-selling Africa Twin and Fireblade are built.
Total powered two-wheeler volume in the period was up by 6% to 4.352 million units. That included 2.831 million machines made by wholly-owned subsidiaries, an 11.2% increase. Biggest contributor was India, where Honda’s Activa scooter is that vast country’s top-seller, pushing overall Asian numbers up by 8.8% to 3.885 million units. Developed export markets grew too. Europe rose by 9% to 72,000 units and North America added 4% at 78,000 units.
But that masked a severe model-mix shortfall caused by Kumamoto’s production problems. Japanese domestic sales were also badly hit by the earthquake, 38.3% down to 29,000 units. A negative forex currency translation impact from the currently strong yen didn’t help either.
The combined effects showed in an 8.5% quarterly bike revenue decline to £3.21bn. Associated operating profit fell by 43.9% to £231m. Operating margin dropped from 11.8% to 7.2%.Â