Honda Motor Co’s second-quarter net profit has dipped a little under analyst expectations, even as it recorded strong car deliveries in its largest auto market, the United States, while motorbike sales in India and Thailand also soared.
Japan’s third-largest automaker by sales volume said its July-September net profit reached 120.4 billion yen (766 million pounds), compared with 82.2 billion yen a year ago. The result was under the average estimate of 134.9 billion yen in a Thomson Reuters I/B/E/S poll of six analysts. It also didn’t reach the 139 billion yen forecast compiled by Bloomberg from notes of seven analysts.
Honda has been battling the high costs of expansion to build new factories and lines as it aims to buoy worldwide car sales to 6 million vehicles by March 2017, compared with a record 4.01 million in the year ended March 2013.
In July, Honda started to build cars at its new Yorii plant near Tokyo, where it is set in November to start manufacturing of the refreshed Fit (Jazz) subcompact, which went on sale in Japan in September. Car sales in September in Japan jumped 40 % from a year earlier to 74,779 vehicles. Honda, the fifth-largest auto company in the United States, had deliveries of 413,434 vehicles there in July-September, up 13.1 % from 2012.