Overall, it was a good year for Honda Motor Company Ltd because of the strong sales from new Honda motorcycles and existing motorcycle products. Add the fact that its financial services unit boosted its revenue as well as its profit. The bottom line is that the company performed better than expected.
For the previous quarter which ended on the last day of September, Honda said that their net income reached $1.87 billion or 210.7 billion yen. The figure is higher by 21 per cent compared to the same period one year ago. Revenue spiked by 1.7 per cent and is now at $34.05 billion or 3.84 trillion yen.
Honda is also happy to announce that their quarterly dividend has increased by a very small percentage.
Japanese companies follow a different fiscal year than Western Companies. For Honda, it starts on the first of April until March 31st. The previous quarter ending on September 30 was only the second one for the 2019 fiscal year of Honda.
Currently, Honda manages four business units including automobiles, power products such as lawn equipment, tractors and generators, financial services and motorcycles. According to the company, there are four major reasons why their operating profit has increased by 40.2 per cent based on year-on-year data.
First, the strong sales with the motorcycle units which lifted Honda’s revenue by 12 per cent not including the currency effects while the second is that the product mix on the sales of automotive is better which means that higher profit vehicles are sold compared to the previous year. Third reason is that the financial services unit performed better this fiscal year and last is that the previous year Honda had to pay settlement for its litigation which deducted a considerable amount on it result.
The sales of new Honda motorcycles have helped its international sales to rise by 1.5 per cent compared to the previous year. Despite the lower sales in Northern America, motorcycle products are doing great in other parts of the world such as Asia, Japan and Europe.