Sept. 7, 2009 – Honda focuses on inventory

Honda’s North American powersports new unit sales followed the industry as a whole, declining by a double-digit percentage.
Honda’s North American powersports segment sales, which includes motorcycles, ATVs and PWC, decreased 32.5 percent to 54,000 units for its recent quarter, which ended June 30.
Honda, in a statement to Powersports Business, noted the company’s ATV sales have outperformed the U.S. market and thus the company has gained market share.
“The systematic approach we have taken to production adjustments and retail market support has reduced Honda and dealer combined U.S. inventory levels more than 18 percent over the past 12 months. Over the next nine months we will continue this course of action to reduce inventories an additional 20 percent to align with market conditions,” Honda said in the statement.
Honda’s motorcycle sales in its North American territory, which includes the United States, Canada and Mexico, fell 38 percent to 31,000 units.
The company, however, said its new model launches, the Fury and the SH150i, have exceeded expectations in terms of sales.
Overall, the company reported a net sales drop of more than 30 percent from the year-ago quarter. However, if calculated at the same exchange rate as the year-ago period, revenue for the quarter would have only fallen by nearly 21 percent.
Honda did report a positive net income of $79 million for the quarter, although that was a decrease of 95.6 percent from the year-ago period.
Honda’s North American revenue from all its divisions decreased by nearly 35 percent to $10.1 billion due mainly to declining auto sales and unfavorable exchange rates.
Honda’s overall motorcycle segment sales declined 17 percent in regard to unit sales. Honda sold 2.2 million units in its recent quarter. Sales declines were seen in Europe (32 percent), Japan (22 percent) as well as its largest market, Asia (11 percent).
Looking ahead, Honda expects its first-half revenue to be down 31.2 percent from the year-ago period. PSB