Honda’s semi-annual net profit in 2022 fell 13 percent

The Japanese manufacturer Honda Motor has announced its balance sheets for April to September of the 2022 fiscal year and its expectations for the second half of the fiscal year.

Honda’s half-year net profit fell 13 percent to 338.5 billion yen ($2.32 billion), according to the data.

Sales revenue increased 15.7% to 8 trillion yen ($55 billion) and operating profit increased 2.5% to 453.4 billion yen ($3.1 billion).

OVERVIEW OF REVISED EARNINGS EXPECTATIONS DUE TO THE LOSS OF THE YEN

Honda upgraded its fiscal 2022 net profit expectation as the Japanese yen continued to depreciate against the currency. As a result, the company expects its net profit to rise 2.5% to 725 billion yen ($4.9 billion) compared to the previous fiscal year.

According to the statement, strong sales rates in the motorcycle segment and the depreciation of the yen are expected to have a positive impact on the net income forecast. All sales revenue for the fiscal year is projected to be 17.4 trillion yen ($119 billion) and operating profit to be 870 billion yen ($5.97 billion).

THE RECESSION AND THE CHIP PROBLEM WILL AFFECT SALES

Honda cut its global vehicle sales target to 4.1 million due to weak sales in the US market and the supply problem of semiconductor chips.

The firm’s chief financial officer, Takeuçi Kohei, told a news conference that they were cautious in the face of rising inflation in the US.

Saying that rising raw material costs are putting pressure on profitability, Takeuçi said: “We are hopeful that material costs will come down.”

The previous net profit forecast for fiscal year 2022, which ends in March next year, was announced at 710 billion yen. (AA)