Honda Reports Q4 2010-2011 Results
North American sales at lowest point since economic downturn
Motorcycle sales generated 1.3 trillion yen (US$15.8 billion) in revenue for Honda, a 13.0% increase over net sales reported in the 2009-2010 fiscal year. Including its automobile, power product and financial services segments, Honda reported a net income of 534 billion yen (US$6.6 billon), nearly double the 268.4 billion yen (US$3.3 billion) reported in the previous fiscal year.
Overall fourth quarter results were not as positive however. The March 11 earthquake in Japan caused Honda and its domestic subsidiaries an estimated loss of 45.7 billion yen (US$560.2 million) due to property damage and the suspension of production. As a result, Honda reported a 44.5 billion yen (US$545.7 million) profit in the fourth quarter, a 38% drop from the 72.1 billion (US$884.2 million) profit reported in the same quarter of 2010-2011. The damage estimate does not include the cost of future restoration efforts which will be included in the 2011-2012 fiscal year financial statements.
Honda continues to make gains in Asia where sales reached 9.2 million units over the fiscal year, up 20.3% from the 7.6 million units sold the previous fiscal year. Honda credited the sales increase to strong demand for the Honda CB Twister in India and small displacement motorcycles and scooters such as the Honda Wave in Thailand and Vietnam.
North American sales however continue to decline, with 185,000 units sold, down from the 189,000 units sold in the previous year. Honda’s North American sales actually started strongly with 60,000 units sold in the first quarter ended June 30, 2010.
Honda was unable to maintain that momentum, however, reporting sales of 43,000 in the second quarter, 44,000 in the third quarter and just 38,000 in the three months ended March 31, 2011, Honda’s worst quarterly performance in North America during the entire economic downturn. Honda reported increased North American sales for the CBR600RR and utility ATVs such as the FourTrax Foreman, and decreased sales for the Goldwing and the CRF450R.
Honda has not announced its forecast for its 2011-2012 fiscal year, due to uncertainty caused by the earthquake in Japan.