Honda Operating Income Up 21.4% in First Quarter of 2013 Thanks to Asia

HondaHondaJapan, 1948 > present102 models
2419 photos
10 videos
has released its financial results for the first quarter of 2013 and for the fiscal year from April 2012 to March 2013, and it is quite the financial success story. For the first quarter of the year operating income was up 21.4% to $1.4 billion. For the fiscal year, Honda made $5.5 billion, a 135.5% increase over the previous fiscal year. The net income for the fiscal year was $3.7 billion, up 73.6%. 

Honda says that the reason for the high sales in the quarter is due to increasing sales in Asia. The recovery in Thailand from the floods in 2011 is nearly complete. Also the value of the yen has been falling for the last several years, which gives Honda higher profits on cars that it sells in foreign markets. 

The strong performance for Honda's fiscal year is because its financial results straddle two calendar years. The flooding in Thailand and tsunami in Japan were still counted on last year's financial results, but that is finished. It sold over four million cars in North America in the last fiscal year, up 900,000 cars. 

Honda is predicting that for the fiscal year 2013/2014 that it will have a before tax income of 7.9 billion, a 59.5% increase over the previous fiscal year. It believes that it will beat the general downfall of the European market because in the first three months of the year its sales are up 16.3% due to high demand for the CR-VHonda CR-V Gen.4Japan, 2012 > present34 versions
38 photos
and diesel Civic.