Honda announces Q1 FY2021 results – sales dipped by 50.4%, operating profit down 46.9% from Q1 FY2020 –

Along with Toyota, Honda has also revealed its financial results for the first quarter of financial year 2021 (FY2021), which starts from April 1, 2020 and end on March 31, 2021. The running theme continues here, as the Japanese company experienced declining demand and production due to the Covid-19 pandemic.

During the three-month period of April 1 to June 30, Honda’s operating profit dipped into the red at negative 113.6 billion yen, representing a year-on-year (YoY) decrease of 366.2 billion yen from the same period in FY2020.

Sales revenue also declined by 1.87 trillion yen YoY to 2.12 trillion yen, with reduced sales across all its business units – motorcycles, automobiles and Life Creation (power generators, lawnmowers and others). Of the three, sales of Honda motorcycles took the biggest hit, with just 1.855 million units delivered, which is 62.3% drop from 4.921 million units in Q1 FY 2020.

Honda automobiles saw the second largest decline at 40%, with 7.92 million cars delivered compared to 1.321 million units, while sales of Life Creation products shrunk by 15.4% to 1.083 million units.

Looking ahead, Honda expects an operating profit of 200 billion yen by the end of FY2021, or 433.6 billion yen less than in FY2020. Meanwhile, it expects sales revenue to peak at 12.8 trillion yen, down 2.1 trillion yen from 14.9 trillion yen in FY2020.

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