7:11 am, February 12, 2023
Honda saw its profits rise by 22 per cent in Q3 with the firm’s performance outstripping expectations.
The Japanese outfit recorded an operating profit of $2.13bn in the three months to December 31, well ahead of previous forecasts.
It had previously been estimated that the manufacturer would make $1.8bn over the period, which saw it continue to struggle against supply constraints.
The impressive figure also represented a significant rise on the same period 12 months prior, when Honda made an operating profit of $1.75bn.
Reuters reports that the results were impacted by issues in the Chinese market, due to the spread of Covid-19.
Since the end of Q3, several of its Chinese dealerships have been forced to close as a result of local lockdown measures, with sales in the country down 50 per cent on the same point last year,
Bosses are now hoping that the situation will ease throughout February.
‘The impact was factored into our original plans,’ said Honda executive Eiji Fujimura. ‘Sales are likely to recover from February.’
Despite reassurances from Fujimura, the firm has now adjusted its forecasts for 2022/23, which comes to an end on March 31.
Bosses are now expecting to sell 3.85m vehicles throughout the year – a 6.1 per cent cut on the previous target of 4.1m.
However, they are sticking to their forecasted annual profit of forecast of $6.6bn.
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