Honda Motor Company, Ltd. HMC shares are trading lower on Wednesday following a decline in the first-half profit and reduced annual profit forecast.
The company reported the first half of FY24 revenue growth of 12.4% year over year 10.798 trillion yen ($69.9 billion), while profits declined 19.7% to 494.6 billion Yen ($3.20 billion).
Automobile consolidated unit sales rose by 64,000 units, driven by strong ICE/HEV sales and the full-scale launch of EVs in North America.
However, group unit sales fell by 155,000 units, primarily due to lower sales in China.
In the motorcycle business, global sales remained robust, reaching a cumulative total of 10 million units by the end of the second quarter.
Operating profit rose 6.6% to 742.6 billion yen, with a margin of 6.9% (vs. 7.2% in the first half of FY23).
Additionally, a resolution was made at the company’s board meeting to repurchase company shares, up to 100 billion yen.
Outlook: For FY25, the company reduced profit for the year attributable to owners of the parent by 50 billion yen to 950 billion yen due to lower equity method profit from reduced sales in China and decreased profit in Honda’s affiliates in Japan.
On the other hand, the company raised the sales revenue forecast by 700 billion yen to 21.000 trillion yen.
Meanwhile, Honda reiterated its FY25 operating profit forecast at 1.420 trillion yen.
Price Action: HMC shares are down 9.72% at $27.36 at the last check Wednesday.
Image via Shutterstock
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