Honda does not seem to find any longer in North America the profits it used to make. That being said, it still managed to sell more cars here than anywhere else on the Globe in the fiscal year that has just ended.
The Japanese carmaker got its biggest revenues from mainland Asia. The operating profit in North America fell 31% to $1.67 billion in the fiscal year that ended in March, and turned North America for Honda into the second profit gainer, after Asia. The key markets of China, India and Thailand, but not Japan, led for Honda to see an increase in the operating profit by 28%, up to $2.32 billion.
Earnings in North America fell a massive 72% in the first quarter of 2015 compared to a year earlier, down to $97.7 million. The cause for that can be attributed to slow sales, the huge airbag recall Honda has gone through and a slow increase of the HR-v crossover production at its new factory in Mexico.
Honda registered a 2.8% increase in its North American sales up to 397,000 cars in the fiscal fourth quarter, but a total decrease of 0.6% to 1.7 million for the entire fiscal year. On the other hand, Asia, which is Honda’s second-biggest market in terms of vehicles sold, managed to see a 15% growth to 464,000 in the latest quarter of the year and an 11% increase to 1.4 million for the year.
The company has seen an overall decline because of the situation in North America in both fourth quarter and the entire fiscal year. Honda missed its own targets for revenue, net income, operating profit and vehicle sales.
By Gabriela Florea