Increased sales in all business segments and the favourable impact of currency translation were the key reasons for a 27.8% increase in Honda Motor Company’s sales and operating revenues for the fourth quarter that ended on March 31 this year, compared to the same period in 2009.
Net sales and operating revenue came to 2.28 billion yen (R189 million), and was the first increase in three years. Net income came to 72.1 billion yen (R6 billion) – an improvement of 40.1%.
While the fourth-quarter trend was overwhelmingly positive, indicating a strong recovery, the results for the fiscal year ending in March 2010 still showed some signs of the significant negative impact of the global recession, and associated drop in demand for vehicles.
Compared to the previous year, net sales and revenue dropped by 14.3 percent. However, operating income increased dramatically, ending on 363.7 billion yen (R30 billion) – an improvement of 91.8 percent. Net income came to 268.4 billion yen (R22.2 billion), which was up 95.9% on the previous year.
In volume terms, Honda Motor Company sold 3.392 million vehicles during the 2009/2010 fiscal year, which is 3.6% less than the previous year. Reduced sales in North America and Europe were the main negatives, despite sales growth in Asia and Japan.
However, the fourth-quarter results confirm Honda’s recovery, with a 28.5% increase in vehicle sales to 874 000 units indicating a strong surge in demand, primarily in the USA, Asia and Japan.
Similar trends were also experienced in the motorcycle division, which sold 9.639 million motorcycles for the 2009/2010 fiscal year – 4.7% less than the year before, despite growing demand in Asia. Fourth quarter results show a similar recovery, however, with the 2.602 million sales representing an improvement of 30%.
Honda’s power products division also mirrored the group’s overall sales trends. While sales volumes for the 2009/2010 financial year were 8.5% down on the previous year, a fourth-quarter recovery of 6.5% to 1.631 million units confirm a return to positive form.
In the light of the group’s positive fourth-quarter results, and the implied improvement in market conditions, Honda Motor Corporation is expecting to improve its net sales and operating revenue by 8.9 percent during the next fiscal year. The company believes net income could increase by as much as 26.7 percent to 340 billion yen (R28 billion).
Honda is expecting sales of 10.375 million motorcycles, 3.615 million motor vehicles and 4.87 million power products during the 2010/2011 fiscal year.
The brand’s international turnaround has also been reflected in the sales of Honda cars in South Africa. Honda SA’s passenger car market share reached 3.35% in March 2010 – the highest level since the global recession saw local demand for new cars plummet in April last year.
“We are pleased to have ended our 2009/2010 financial year onsuch a positive note in the wake of the tough trading conditions,” says Graham Eagle, director of marketing and sales at Honda SA.
“Our dealer network is enjoying a healthy and sustainable growth in demand, which augurs well for Honda’s continued positive prospects,” he added.
Net sales and operating revenue came to 2.28 billion yen (R189 million), and was the first increase in three years. Net income came to 72.1 billion yen (R6 billion) – an improvement of 40.1%.
While the fourth-quarter trend was overwhelmingly positive, indicating a strong recovery, the results for the fiscal year ending in March 2010 still showed some signs of the significant negative impact of the global recession, and associated drop in demand for vehicles.
Compared to the previous year, net sales and revenue dropped by 14.3 percent. However, operating income increased dramatically, ending on 363.7 billion yen (R30 billion) – an improvement of 91.8 percent. Net income came to 268.4 billion yen (R22.2 billion), which was up 95.9% on the previous year.
In volume terms, Honda Motor Company sold 3.392 million vehicles during the 2009/2010 fiscal year, which is 3.6% less than the previous year. Reduced sales in North America and Europe were the main negatives, despite sales growth in Asia and Japan.
However, the fourth-quarter results confirm Honda’s recovery, with a 28.5% increase in vehicle sales to 874 000 units indicating a strong surge in demand, primarily in the USA, Asia and Japan.
Similar trends were also experienced in the motorcycle division, which sold 9.639 million motorcycles for the 2009/2010 fiscal year – 4.7% less than the year before, despite growing demand in Asia. Fourth quarter results show a similar recovery, however, with the 2.602 million sales representing an improvement of 30%.
Honda’s power products division also mirrored the group’s overall sales trends. While sales volumes for the 2009/2010 financial year were 8.5% down on the previous year, a fourth-quarter recovery of 6.5% to 1.631 million units confirm a return to positive form.
In the light of the group’s positive fourth-quarter results, and the implied improvement in market conditions, Honda Motor Corporation is expecting to improve its net sales and operating revenue by 8.9 percent during the next fiscal year. The company believes net income could increase by as much as 26.7 percent to 340 billion yen (R28 billion).
Honda is expecting sales of 10.375 million motorcycles, 3.615 million motor vehicles and 4.87 million power products during the 2010/2011 fiscal year.
The brand’s international turnaround has also been reflected in the sales of Honda cars in South Africa. Honda SA’s passenger car market share reached 3.35% in March 2010 – the highest level since the global recession saw local demand for new cars plummet in April last year.
“We are pleased to have ended our 2009/2010 financial year onsuch a positive note in the wake of the tough trading conditions,” says Graham Eagle, director of marketing and sales at Honda SA.
“Our dealer network is enjoying a healthy and sustainable growth in demand, which augurs well for Honda’s continued positive prospects,” he added.
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