Honda Motor Co. (NYSE: HMC) posted a profit of ¥272.5 billion ($3.1 billion) for the first quarter of its fiscal year 2011 that rose remarkably by ¥264.9 billion ($3 billion) from ¥7.6 billion ($85 million) in the same quarter of the previous fiscal year. This was equivalent to earnings per share of ¥150.27 ($1.70), an increase of ¥146.10 ($1.65) from ¥4.17 (5 cents) for the corresponding period last year.
Consolidated net sales and other operating revenues in the quarter appreciated 18% to ¥2.4 trillion ($26.7 billion) due to higher revenues in the Automobile segment, partially offset by unfavorable currency translation effects. At constant exchange rates, Honda's revenues increased 19.5%.
Consolidated operating income increased more than ninefold to ¥234.4 billion ($2.65 billion) from ¥25.2 billion ($284 million). This was attributable to higher revenues, favorable product mix and benefit from cost reduction measures, partially offset by increased research and development expenses and unfavorable currency translation effects.
Segment Results
Sales in the Automobile segment rose 17% to 899,000 units. In Japan, sales increased 13% to 145,000 units due to higher sales of CR-Z, Fit and Step WGN models. Outside of Japan, sales went up 18% to 754,000 units due to improved sales in North America and Asia that more than offset the lower sales in Europe.
Revenues from sales to external customers in the segment escalated 19% to ¥1.81 trillion ($20.5 billion) due to increased sales volume. Operating income was ¥148.9 billion ($1.7 billion) versus a loss of ¥21.4 billion ($242 million) in the same period last year, due to higher sales volume, favorable product mix and benefit from cost reduction measures, partially offset by increased research and development expenses, selling, general and administrative expenses, and unfavorable currency translation effects.
Sales in the Motorcycle segment grew 28% to 2.9 million units. In Japan, sales were flat at 45,000 units. Outside of Japan, sales increased 29% to 2.8 million units driven by a rise in sales volume in Asia, particularly in India, Indonesia and Thailand, and South America.
Revenues from sales to external customers advanced 25% to ¥320.2 billion ($3.6 billion) due to improved sales volume and favorable currency translation effects. Operating income jumped about sixfold to ¥31.3 billion ($354 million) from ¥5.6 billion ($63 million) a year ago.
Revenue from sales to external customers in the Financial Services segment fell 4% to ¥149.4 billion ($1.7 billion) due to unfavorable currency translation effects.
