Honda revenue declines on semiconductor crunch and uncooked materials prices

Honda revenue declines on semiconductor crunch and uncooked materials prices

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TOKYO — Honda’s fiscal first quarter revenue fell 33% from final yr as a world pc chip scarcity, a pandemic-related lockdown in China and the rising prices of uncooked supplies damage the Japanese automaker.

Tokyo-based Honda Motor Co. reported Wednesday that its revenue totaled 149.2 billion yen ($1.1 billion) within the April-June quarter, down from 222.5 billion yen ($1.7 billion) a yr earlier. Quarterly gross sales slipped 7% to three.8 trillion yen ($28 billion).

Honda stored its revenue forecast for the complete fiscal yr by March 2023 unchanged at 710 billion yen ($5.3 billion).

The semiconductor scarcity has damage all of the world’s automakers, together with Honda, regardless of sturdy demand, and the producers have been scrambling to safe various suppliers.

Honda, which makes the Accord sedan, Odyssey minivan and Civic compact, offered about 815,000 autos final quarter, down from 998,000 autos the identical interval a yr earlier. Auto gross sales dropped in virtually all areas around the globe, together with Japan, the U.S. and Europe.

“I ask for the understanding from all those that are nonetheless ready for his or her autos and vow that our complete firm is doing its utmost to make the deliveries even a day sooner,” Chief Monetary Officer Kohei Takeuchi mentioned.

Takeuchi mentioned the semiconductor scarcity curtailed bike manufacturing in addition to automotive manufacturing, including to uncertainty about future prospects.

Honda mentioned the latest lockdown in Shanghai was among the many causes of the scarcity in pc chips provide however declined to offer specifics.

Though U.S. gross sales are probably dealing with a dent from recession worries and different financial hardships, Takeuchi acknowledged he was extra anxious concerning the scarcity drawback and producing the vehicles prospects have been ready for.

Takeuchi famous that bike gross sales for the quarter, which grew to 4.25 million bikes from 3.88 million a yr earlier, have been going sturdy, particularly in India. The cheaper yen and price cuts helped keep profitability general, he added.

The yen has been at a two-decade low in opposition to the U.S. greenback. An inexpensive yen has traditionally labored as a boon for exporters like Honda by boosting the worth of their abroad earnings when transformed into yen. Nevertheless it additionally will increase prices for imported parts and supplies.

Japan’s prime automaker Toyota Motor Corp. reported not too long ago that its fiscal first quarter revenue fell almost 18%. Nissan Motor Co. noticed its quarterly revenue plunge to lower than half of what it was a yr earlier. Each have been hit by the chips scarcity.

Like the remainder of the trade, Honda has aggressive ambitions in electrical autos. Earlier this yr, it introduced an funding of 5 trillion yen ($37 billion) over the subsequent decade in such analysis. That features a collaboration with Normal Motors Co. in North America to develop fashions happening sale in 2024.

To beef up its capital base and hold a versatile capital technique, Honda mentioned it was shopping for again its personal firm frequent shares of as much as 100 billion yen ($740 million), beginning Friday by March 2023.

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