Honda Motor (NYSE:HMC) Co revealed its profit forecast for the current fiscal year, surpassing analyst expectations, thanks to an uptick in automobile production.
The Japanese automaker expects its operating profit for the period ending in March 2024 to reach ¥1 trillion (US$7.5 billion), exceeding the average analyst projection of ¥996 billion (US$7.4 billion). Net sales are anticipated to reach ¥18.2 trillion ($13.5 billion), in line with analyst expecations.
Honda said that declines in certain material prices, and robust motorcycle sales in India and Southeast Asia have also helped it reach these projections.
In the recently concluded fiscal year, Honda reported an operating profit of ¥839 billion ($622.4 million), falling short of analysts' projections of ¥892.5 billion (US$662.1 million) and its own forecast of ¥870 billion. However, sales increased by 16% to ¥16.9 trillion ($12.5 billion), slightly below analysts' expectations of ¥17 trillion.
Honda declared a record high dividend of ¥150 per share, a significant increase from the previous fiscal year's ¥30. Despite this positive news, Honda's shares slipped 1.9% following the announcement, although they have seen an overall increase of 18% this year.
The car company also announced plans to repurchase up to ¥200 billion ($1.5 billion) yen worth of its own shares.
Contact Angela at angela@proactiveinvestors.com
Folllow her on Twitter @AHarmantas