Honda returns to profit growth in Q1 as motorcycles, U.S. and India sales lift results

Honda Motor Co. said fiscal first-quarter profit more than doubled to 456.9 billion yen from 196.6 billion yen a year earlier, while sales rose 13.5% to 6.06 trillion yen as demand in the U.S. and India and strong motorcycle operations in Brazil and India supported results. The automaker, which recorded a 423.9 billion yen loss for the fiscal year ended in March, said it is continuing a turnaround after heavy costs tied to electric-vehicle plans that fell short of its original ambitions. Car sales grew in Japan and the U.S. but remained weak in China, where Chief Financial Officer Masao Kawaguchi said Honda is working to offer models better suited to local buyers, a process he said may take another year or two. He also said first-quarter results were helped by a favorable exchange rate, as a weaker yen boosted the value of overseas earnings when translated into Japanese currency. Honda raised its full-year profit forecast to 400 billion yen from 260 billion yen, signaling an expected return to profit this fiscal year. The company is also contending with the impact of U.S. President Donald Trump's policies, including reduced EV incentives and tariffs on imported autos and parts that were lowered to 15% from 25%. In Japan, Honda said the exact effect of the recent 7.1 magnitude Kumamoto earthquake on production remains unclear after temporary line stoppages and supply-chain disruption.