Honda reported a 6.6% increase in quarterly net profit thanks to the quick depreciation of the yen and strong demand for the CR-V and Accord models in the States.
During he quarter ended March 31st, Honda reached a net profit of 75.7 billion yen ($760.88 million), from 71.5 billion yen in the same period last year. The Japanese yen has fallen 14% compared with the dollar since the beginning of this year, which meant cheaper exports for the Japanese automakers and helped them convert profits made in foreign markets into yen at a more profitable rate. Honda reported net profit for fiscal year ended March up 73.6% to 367.15 billion yen ($3.69 billion).
Deliveries in the US increased 5.5% to 337,651 units during the first quarter, according to Autodata. This year Honda plans to break the record of 1.55 million vehicles sold in the US, reached in 2007. The Accord, which is Honda’s best selling model in the States, saw its deliveries increase 36% in March, surpassing the Toyota Camry in the mid-size sedan segment. Honda targets annual global sales of 6 million by 2017, from 4.01 million the last fiscal year.
“Honda’s targets are very bullish in the U.S., but competition in the market is very fierce this year,” said Issei Takahashi, a Tokyo-based auto analyst at Credit Suisse Group. “Toyota’s new Corolla will come later this year, and that may have an impact on Honda’s Civic sales.”