Honda Sales And Profits Surge (HMC, F, TM, NSANY, TSLA)

7 Май 2015 | Author: | Комментарии к записи Honda Sales And Profits Surge (HMC, F, TM, NSANY, TSLA) отключены
motorcycle Honda 644

Honda Sales And Profits

Honda Motor Corp . ) racked up strong profits on a in auto sales in its second The automaker had strong sales in the U.S. and Japan, and raised the for its full year.


For its second quarter in fiscal Honda sold 898,000 an increase of 7%. Honda’s revenue 13.5% in North America and 16% in Total revenue was up 9.5% to $26.85 billion, up from billion a year ago. Net was $1.62 billion (90 cents per an increase from $644.8 or 36 cents a share in the year ago

Honda’s strong earnings follows Ford Motor’s ) strong earnings report of week, as the auto industry to gradually recover from the

Behind the Numbers

Honda its capital expenditure cuts, an product mix as well as increased as all contributing to the increased earnings. In to its robust auto sales, also posted strong sales, as it sold 2.73 and had a 23.6% increase in sales in its division. Overall revenue in was higher, but European revenue was a spot, as sales fell by

The strong quarter’s overall led the company to forecast a 10% increase in for the year, despite projections of revenue increases for its year in March, 2011. Revenue is to increase 4.9% to $107.39 instead of the earlier projection of of $108.59 billion.

Auto Industry Grows Competitive

Ford’s recent report highlighted its gains in share, among other The auto industry has been in the last few years by the significant in the fortunes of the U.S. automakers as as the increasing vigor of foreign Yet, thriving automakers as Honda and Toyota Motors ) are pressured, too.

— is entering the electric car parade, for as it will be introducing its prototype month. Nissan (OTC:NSANY ) is Toyota’s Prius hybrid its all-electric Leaf. The future of such as what tiny Motors (Nasdaq:TSLA ) is banking on is anyone’s guess.

Yet all-electrics, not just hybrids, is a area that most have to enter, if only the other companies are doing so.


Electric cars and aside, the fight for market is getting more crowded by the strengths of the companies. Privately South Korean automaker which recently posted a profit of $1.2 billion, is a player in the global market. Its sales increased 19% in 2009, its affiliated company, Kia Motors, sales 12% in the U.S.

Hyundai is making well-built, styled cars that are priced, something of a reprise of the formula of previous decades. How Hyundai continues to build its will determine how much of a challenger it will be in the global market.

Honda’s Outlook

The profit increase for Honda’s 2011 is a positive sign; the revenue increase, not as much. like most of the automakers, is clawing back toward numbers. While its earnings and improve, the company’s balance is fairly healthy.

Honda has more than $15 in cash and cash equivalents. an from the roughly $11 billion it had year. Honda’s long-term is slightly more than $36 though its cash flow operations was down to $8 billion $11.6 billion in the first of its fiscal 2011.

The Bottom

The stock trades at a 21.6 P/E but a multiple of only 12. Investors to focus carefully on the fundamentals of the business, such as unit and market share. Honda’s in the mix to be but we’d wait to see quarter-to-quarter if it can rolling along and sustain gains. (For related see Analyzing Auto Stocks .)

— Use the Investopedia Stock to trade the stocks mentioned in stock analysis, risk

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