Japan's Honda Motor Co., Ltd. said consolidated net income for the first half of the year ended September 30 was 271.3 billion yen, up 11 percent compared to the same six months last year. Revenue was 5.230 trillion yen, up 13.7 percent.
Honda said increased profit from higher revenue and the positive effects of the depreciation of the yen offset the negative impacts of changes in the model mix, soaring raw materials costs exceeding continued cost reduction efforts, and an increase in selling, general and administrative (SG&A) expenses.
First half motorcycle sales totaled 5.196 million units, up 2.5 percent from sales during the same six-month period last year, due primarily to growth in India and Brazil.
Global automobile sales were up 6.3 percent to 1.78 million units and power product sales were up 11 percent to 2.911 million units - both new sales records.
Honda is aiming for revenue of 11 trillion yen for the fiscal year ending March 31, 2007, up 11 percent from revenue of 9.91 trillion yen for the year ended March 31, 2006. Net income is expected to be around 555 billion yen, a 7 percent drop from net income of 597 billion yen last year.
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