Honda Profits Shoot Up in Q1 of 2011

Honda reported a rise in net profits of 99% over the previous quarter. This was despite the losses caused by the earthquake on March 11th and the continued strength of the Yen. The strong growth was primarily driven by strong demand for passenger cars in north America and two-wheeled vehicles in the developing economies.

4-wheeled vehicle sales were up 3.5% and 2-wheeled sales up 13.7%. Sales as a whole were up 4.2% over the same period last year, so the strong increase in profits points to an increase in efficiency and reductions in costs.

However, with production likely to remain at 50% of normal into June, and the effect of this spreading to overseas markets also, Honda warned that results for July through September are likely to be poor.

Source: Nikkan (Japanese-language)