Honda Motor Co. experienced reduced earnings from its powersports vehicle sales in its North America market for its fiscal second quarter and first half.
The manufacturer reported a 15 percent sales decrease in North America, which includes the United States, Mexico and Canada, for its motorcycle segment. That segment includes not only motorcycles but ATVs and PWC. For just motorcycles, Honda’s sales in North America of 61,000 units in its second quarter decreased nearly 13 percent from the previous year period.
For its first half, which ended Sept. 30, Honda’s North American motorcycle segment sold 201,000 units, down 13.4 percent from a year ago. For motorcycles alone, the 105,000 units sold was a 14.6 percent decline from the previous year period.
Declining motorcycle sales for Honda was not limited to North America, however. Honda reported an overall 17 percent decline in its motorcycle segment sales for its second quarter. That included decreasing sales in Europe (6 percent) and Asia (24 percent). Honda, however, did report quarterly sales increases in Japan (9 percent) and in Latin America.
For its first half, Honda’s overall motorcycle segment sales of 4.5 million units are down nearly 12 percent compared to the year ago period.
Honda’s overall revenue, from all of its segments including auto, increased nearly 13 percent for its second quarter to $25.7 billion.
The company’s net income jumped 63 percent to $1.8 billion and its operating income increased 48 percent. The latter the company attributed to more revenue, continued cost reduction efforts and the positive impact of currency.
Among the revenue increases Honda reported was a rise in auto sales. Worldwide, the company’s auto sales rose 6 percent. In North America, it was even higher, at more than 8 percent. psb
Copyright 2007 Powersports Business