Honda Motor (TYO:7267) (NYSE:HMC) announced Wednesday, a 78% surge in quarterly earnings, attributed to higher sales, particularly in North America.
The country's second-largest car manufacturer in terms of sales disclosed an operating profit of ¥394.4 billion ($2.76 billion) for the period spanning April to June, compared with a ¥222.2B profit in the same period last year and significantly surpassing the street’s ¥324.74B estimate.
Honda reported a substantial 44.7% year-on-year increase in sales to retail customers in the crucial U.S. market. This surge amounted to 347,000 units, reflecting an easing of supply disruptions caused by post-pandemic challenges.
However, according to a Honda official, conditions in China have grown worse for Honda compared to when it issued its forecast of selling 1.4 million vehicles for the full year.
"We're still operating amid some restrictions from semiconductors," the official said. "If we were to revise our sales forecast in China, we'll want to move ahead with considering whether we can distribute parts to and manufacture more in other regions."
Honda reiterated its forecast for a ¥1.0 trillion operating profit for the current year, below the average forecast of ¥1.117 trillion.
Shares of HMC are up 3.69% in early trading Wednesday.