Honda Motor, Japan’s 2nd main car maker reported nearly 7 fold increase in profit in the final quarter from the previous year. This was due to higher sales in India and China.
Honda reported higher than expected net profit of 134.6 billion yen ($1.5 billion) for 3rd financial quarter ending December. This was higher than 20.2 billion yen for the equivalent period in the earlier year.
Besides the strong sales in the remaining parts of Asia, cost-cutting also helped increase the group’s bottom line. It was balanced by an 11.5% reduction of 2.24 trillion yen in revenue in the quarter.
Honda’s estimates for the entire fiscal year that finishes next month, increased its net profit estimates to 265 billion yen from 155 billion, and its revenue goal to 8.53 trillion yen from 8.45 trillion.
Honda vice president Koichi Kondo said that while saying the economy has recovered is exaggeration, it definitely has bottomed out.
Like other Japanese automakers, Honda has fastened its hopes on sales of fuel-efficient cars in order to combat the effects of global crisis. However Kondo warned that it likely that the reduction in sales is likely because of the termination of government incentives meant for increasing the sales of green cars.
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