Honda's first quarter operating profit recorded a record high, due to strong US sales and depreciation of the yen
$Honda Motor (7267.JP)$ On Wednesday, it was announced that operating profit for the first quarter of the fiscal year ending June had reached a record high.
According to the company's announcement, operating profit for the first quarter was 484.7 billion yen, up 23% from the same period last year, exceeding analysts' expectations of 442 billion yen. The company alsoHe stated that the depreciation of the yen was also one of the reasons for the strong performance.
However, Honda left its operating profit forecast unchanged at 1 trillion420 billion yen for the current fiscal year.
Despite strong demand for hybrid vehicles in the US market, Honda is being forced to struggle in the Chinese market. This is because there are no competitive electric vehicles that compete with local companies such as BYD, which leads the market. Honda's sales volume in China fell 40% in June this year, leading to a decision to close the joint venture plant in November last year.
Honda also decided to cut production of gasoline cars in China by 19% starting in October.
In order to increase competitiveness in China, Honda last week $Nissan Motor (7201.JP)$ It was agreed to cooperate and develop software, batteries, and other technologies related to electric vehicles.
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