Honda profits quadruple in recovery, but below market expectations image

Honda Motor Co. says April-June profit quadrupled to 131.7 billion yen ($1.7 billion), underscoring a recovery from the impact of last year’s quake-tsunami disasters.

Sales soared 42.1 percent to 2.44 trillion yen while operating profit jumped to 176.0 billion yen ($2.25 billion) from 22.6 billion yen a year earlier, the company said.

While the result was below the average estimate of 197.4 billion yen by seven analysts polled by Thomson Reuters I/B/E/S, it was more than s i x times the year-ago figure, as it rebounded after last year’s March 11 earthquake and tsunami.

Honda said solid sales offset the damage from the strong yen, which erodes overseas earnings, as well as higher research expenses.

For the full fiscal year, the carmaker maintained its net profit forecast of Y470 billion, an operating profit outlook of Y620 billion and a sales projection of Y10.300 trillion.

“Although uncertainties concerning economic situation, market trends, and fluctuations in foreign exchange currency remain, after taking the fiscal first quarter financial results into consideration, Honda has not revised its previously announced consolidated financial results forecasts,” the firm said.

Honda is Japan’s third-biggest carmaker.

Shares in Honda have fallen nearly 20 percent in the financial year that began in April.