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Toyota Motor, Honda Motor Post Sharp First-Quarter Profit Gains

By Kosaku Narioka

Toyota Motor Corp. and Honda Motor Co. on Wednesday posted sharp rises in their respective first-quarter net profits from a year earlier, demonstrating their continued recovery from the Covid-19 pandemic.

Toyota Motor said that net profit for the quarter ended June rose to 897.83 billion yen ($8.23 billion) from Y158.84 billion in the year-earlier period when the pandemic hurt sales globally. The quarterly net profit beat the estimate of Y696.15 billion from a FactSet poll of analysts.

Its revenue increased 72% to Y7.936 trillion.

Operating profit for Japan rose to Y518.5 billion from Y77.4 billion a year earlier and operating profit for Asia excluding Japan increased to Y166.6 billion from Y42.8 billion. North America operations posted a profit of Y248.8 billion, compared with a loss a year earlier, and European operations also recorded a profit.

Toyota kept its forecasts for car sales, revenue and net profit for the year ending March. The company continued to expect group vehicle sales of 10.6 million units this fiscal year. It expects revenue to increase 10% to Y30.000 trillion and net profit to rise 2.4% to Y2.300 trillion.

Meanwhile, Honda Motor said that its net profit for the quarter ended June was Y222.51 billion, compared with a net loss of Y80.87 billion a year earlier. That exceeded the Y102.64 billion forecast taken from a FactSet poll of analysts.

Revenue increased 69% to Y3.584 trillion thanks partly to a car-sales recovery in North America.

Honda’s car business posted an operating profit of Y70.69 billion, compared with a loss of Y195.89 billion a year earlier.

Honda raised its revenue and net-profit forecasts for the fiscal year ending March. It expects revenue to climb 17% to Y15.450 trillion, compared with the previous forecast of a 15% rise, and thinks net profit will rise 1.9% to Y670.00 billion, compared with its previous view of a 10% decrease.

Write to Kosaku Narioka at [email protected]

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