In a reflection of the continued comeback and recovery of Honda from several natural disasters a couple years ago and the automotive industry as a whole, Honda posted more than a $1 billion net profit last quarter, which is a 46% boost from last year.
According to this article, part of that boost in sales is due to an increase in sales of the Honda Accord (14 percent) and Honda Civic (nine percent). Much of the profit can also be attributed to increase in sales in the United States and a weakening Yen in Japan.
“The yen has fallen about 12 percent against the dollar in 2013, creating a tailwind for Japanese brands as they face the most competitive lineup of vehicles in a generation from U.S. automakers GM, Ford Motor Co. and Chrysler Group LLC.”
Of course this is a good sign that people are more confident in their spending and spending their hard earned dollars on Hondas. Honda has worked hard to earn the trust of consumers and that’s reflected in the earnings last quarter!
Like any automotive company, Honda’s profits are tied to the quality and sales of its products. Well, I guess you could say that the quality of Hondas and the number of Hondas is at a high because Honda’s profits rose by a net of 6.6 percent last quarter.
Honda posted a net profit of $760.88 million.
Of course, profit all has to do with sales and strong Honda sales were led by the 2013 Honda Accord that jumped 36 percent over the previous month forcing the Toyota Camry to second place.
According to this article, “In the U.S., Honda’s deliveries rose 5.5 percent to 337,651 units in the three months ended March, according to industry researcher Autodata Corp. Honda saw its best year in the U.S. in 2007 at 1.55 million vehicles and is aiming to break that record this year, according to Tetsuo Iwamura, executive vice president.”
In the next year, Honda expects deliveries to rise by 10 percent led by the redesigned Honda Accord and assisted by the new Honda Fit. Honda’s growth will be global and not just in sales, but also in manufacturing.
“Honda wants to grow rapidly by focusing on emerging markets and small cars, and the automaker is expanding capacity globally. It plans a new plant in Thailand that will open in 2015. This year, it will add an extra line at a factory in Malaysia, start operations at Yorii in Japan and then open a new plant in Mexico in 2014.”
We are encouraged by the growth we see in Honda. After a rough couple years of sales and production because of the earthquake and tsunami in Japan, it’s very heartening to hear that Honda is continuing to grow and thrive.