Honda Motor Co. reported a consolidated net profit of 101.82 billion yen in the April-June quarter, down 5.4 percent from the same period last year, company officials said Monday.
The officials attributed the decline to the yen's appreciation against the dollar and increased operational costs.
Its consolidated operating profit dropped 12.1 percent to 150.18 billion yen, and consolidated pretax profit fell 9.6 percent to 148 billion yen.
But the carmaker posted record group sales of 2.01 trillion yen in the quarter, up 3.7 percent from the same period in 2002, by selling 708,000 vehicles worldwide, up 2 percent.
The company attributed the increase to brisk sales of sport utility vehicles and the new Accord in North America.
Overseas sales rose 10.3 percent from the same period in 2002 to 1.66 trillion yen, with 555,000 vehicles sold, up 15.4 percent. But domestic sales plunged 19.1 percent to 351.2 billion yen, with 153,000 units sold, down 28.2 percent.
"We're relieved that overseas business covered the poor performance in the domestic market," said Koichi Amemiya, Honda's executive vice president, noting that the global business would get better in the second half of fiscal 2003.
For the full business year to March 31, 2004, Honda revised upward its earnings projections, with the yen expected to fall slightly against the dollar and euro from forecasts issued in April, company officials said.
As a result, the firm's group net profit will increase to 451 billion yen from an April projection of 440 billion yen. Its consolidated operating profit will reach 644 billion yen from an earlier forecast of 620 billion yen, and its consolidated pretax profit will rise to 648 billion yen from a previous projection of 620 billion yen.
The company's group sales forecast stands at 8.3 trillion yen, mirroring its April projection.
But its domestic sales forecast has been revised downward to 1.8 trillion yen from an earlier projection of 1.85 trillion yen, reflecting stagnant sales at home.