May 24, 2010 – Honda profits rebound in 4th quarter

Honda Motor Co.’s North American motorcycle sales continued to decline in its fourth quarter, but the manufacturer still reported a substantial increase in net income for its recently concluded fiscal year.

Honda’s net income of more than $2.8 billion represented a 96 percent increase over the prior fiscal year.

Honda’s sales, however, did decrease overall, largely due to a decline in auto sales and an unfavorable currency climate. The company’s total sales of $92.2 billon declined 14.3 percent from a year ago. However, had the exchange rate remained the same as the prior year, the company’s revenue would have only dropped by half that percentage.

For its fiscal year, which ended March 31, Honda’s sales in North America, however, were off 41 percent for its motorcycle division, which includes motorcycles, ATVs and PWC. Unit sales for motorcycles alone in North America decreased 48 percent from a year ago. Honda’s North American motorcycle sales for its fiscal year totaled 98,000 units in comparison to 188,000 a year before.

Honda officials told Powersports Business its U.S. sales were showing signs of improvement with the help of a number of 2010 models being released and now arriving in dealerships. That new model selection will include the recently announced PCX125, a new scooter.

U.S. Honda officials also noted that the company is in “a great position right now with inventory.”
For its fourth quarter, Honda’s motorcycle division sales amounted to 45,000 units, a decline of 37.5 percent. For motorcycles alone, the 23,000 units sold represented a decrease of 49 percent.

Although North American sales remain down, Honda Motor Co. reported a 30 percent rise in its worldwide motorcycle division sales for its recent quarter. Worldwide, Honda sold 2.6 million units in its fourth quarter, with sale increases coming in Japan, Asia and its “other regions.”

For its fiscal year, Honda sold 9.5 million motorcycles worldwide, a decline of 4 percent.
Motorcycle sales in Europe were off 28 percent for Honda in its fiscal year. Volume in Europe of motorcycles alone totaled 192,000 units. PSB