Honda earnings up 283 percent in past quarter

August 24, 1996|By BLOOMBERG BUSINESS NEWS

TOKYO -- Honda Motor Co.'s quarterly earnings jumped nearly fourfold as sales rose in Japan and a stronger dollar boosted revenue from abroad, the company said yesterday.

Group net earnings rose 283 percent to 45.7 billion yen ($423 million) in the three months ended June 30. Sales rose 30 percent to 1.2 trillion yen.

The profits were in line with many analysts' expectations for strong earnings. The company's shares fell 10 yen to 2,540.

Honda, Japan's No. 4 automaker, is picking up market share by tapping into the fast-growing segment for "recreational vehicles," which in Japan includes minivans, sport-utility vehicles and station wagons.

XTC Sales in Japan rose 40 percent to 386 billion yen from the same quarter of 1995. Unit sales jumped 25 percent.

The stronger dollar contributed 25 billion yen to first quarter results at the operating level, Honda said. North American sales rose 44 percent to 427.5 billion, while unit sales rose edged up 1 percent, the company said.

Pub Date: 8/24/96

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.