Honda Reports Q1 2013-2014 Results

Honda reported sales of 4.05 million motorcycles over its first quarter ended June 30, 2013, a 3.7% increase from the 3.91 million motorcycles sold in the same period last year.

The increase in motorcycle sales resulted in 396.8 billion yen (US$4.04 billion) in sales revenue, a 14.4% increase on 346.6 billion yen in revenue reported in the same quarter the previous fiscal year. Overall, Honda‘s reported a combined revenue of 2.83 trillion yen from all its operations, a 398.1 billion yen improvement from last year.

However the net profit of 122.4 billion yen was smaller than the 131.7 billion yen reported last year. Honda attributes the decrease to new investments to research and development and starting up new production plants.

Honda sold 62,000 motorcycles in North America over the quarter, up from 59,000 reported last year. Honda credits the introduction of the Gold Wing F6B and the CBR500 and CB500F as well as the NC700X for its gains in North America. The CB500 sales appear to have had a negative impact on sales of the CBR250R which saw fewer sales than it did last year.

Sales in Asia were also positive, with Honda selling 3.48 million motorcycles, up from 3.29 million motorcycles sold in the first quarter last year. In particular, Honda credits increased sales of the BeAt and Vario models in Indonesia,l the Dream Yuga, Activa and Dream Neo in India, and the Wave 110i, Zoomer-X and the MSX125 (a.k.a. the Grom).

The Grom also had a positive impact on sales in Japan, as did the CBR400R and 400x (the 400cc versions of the CBR500R and CB500X), but decreased sales of models such as the Today, Giorno and PCX scooter resulted in an 8.4% decrease in sales to 54,000 units.

The news was worse in Europe where Honda reported sales of 52,000 units, down 13.3% from 60,000 units. The introduction of the 500 series models was offset by decreased sales of the PCX125, Vision 110 and other models in southern Europe.

Sales in other emerging markets totaled 407,000 units, down from 448,000 units.

Looking ahead Honda forecasts sales of 17.4 million units by the end of its fiscal year in March 31, 2014. This would represent a 12.3% increase from the 15.5 million motorcycles sold the previous fiscal year. North American sales are expected to reach 315,000 units, up from 250,000 units sold last year.

By Dennis Chung