Honda Motor reports record quarter

Honda Motor announced its financial results for the first quarter of the fiscal year 2025 today. The company recorded the highest operating quarterly profit in its history, with 484.7 billion yen, equivalent to an operating profit margin of 9%. In the motorcycle business, Honda experienced a global increase in units sold, particularly in the Indian and Brazilian markets. The automobile business also saw success, driven notably by the sales of hybrid models, which increased profit compared to the previous year. China, however, continues to pose challenges. Honda revised its sales forecast for this market downward, yet maintained the previous operating profit margin and the profit attributable to the owners of the parent company. Overall, revenue in the automotive sector rose to 869,000 units despite a decline in China. In contrast, sales in the power product business decreased in North America and Europe, resulting in a total of 822,000 units sold. For the full fiscal year 2025, Honda maintains its forecast of 1.42 trillion yen in operating profit. The annual dividend is expected to remain at 68 yen per share, as previously announced. The company is also working on improving corporate governance and plans to end the practice of cross-holdings soon. This aims to create a broader shareholder base and further enhance corporate values. Chief Financial Officer Eiji Fujimura and Head of Accounting and Finance Supervision Unit Masao Kawaguchi detailed the figures. While sales in the motorcycle industry remain stable, adjustments are being made in the automobile sector due to market conditions in China. Pre-tax profit increased by 44.5 billion yen compared to the previous year, totaling 5.594 trillion yen. Currency assumptions remain unchanged due to constantly fluctuating exchange rates. Honda continues to see potential in shareholder engagement and plans to further its efforts in brand strengthening and business foundation improvement.