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Honda reports $1.9 billion profit in first quarter despite sales lag at home

Ford, General Motors and Chrysler have been living in a world of sunshine and buttercups after their April-through-June financials hit the newswire, and Toyota is doing pretty good as well. Honda? Not so much.
While Japan's third-largest manufacturer saw $1.9 billion in profits, the 5.1-percent jump was lower than expected thanks to a drop in its home-market sales. US sales also took a sting, as Honda hasn't been able to match the SUV and truck demand that are currently permeating the American market, despite an uptick in Accord sales.
Honda's initial forecasts targeted a take of 209.3 billion yen ($2.1 billion at today's rates), and while a $200 million shortfall is nothing to sniff at, we'd hardly take this as Honda being in trouble. And even with the dip, Honda hasn't adjusted its forecast for the fiscal year, which remains at 780 billion yen ($7.9 billion).

2019 Acura RDX compact crossover goes into production in Ohio

Acura has kicked off production of the all-new 2019 RDX, capping a $54 million investment in new technologies and processes at its plant in East Liberty, Ohio, where the compact crossover will be built. It goes on sale starting in June, though prices are yet to be announced. The RDX is Acura's best-selling model, and the 2019 model was designed and developed in the U.S. for the first time. Acura says it's the first in a new generation of vehicles based on its Precision Crafted Performance brand direction, which is based on the Precision Concept and Precision Cockpit concepts from 2016. Honda's investment in its East Liberty Auto Plant brought two firsts for a mass-produced Acura: a new roller hemming process for the crossover's large panoramic sliding moonroof and the use of high-performance structural adhesives to increase body rigidity. It also gets a new multi-layer paint system to handle the new premium exterior color options. The RDX is powered by a 2.0-liter four-cylinder VTEC Turbo engine built in nearby Anna, Ohio. It makes 272 horsepower and 280 pound-feet of torque and is paired with Acura's 10-speed automatic, made at the company's transmission plant in Tallapoosa, Ga. Also notable is the "Super Handling All-Wheel Drive" system, which shifts more power to the rear axle to improve handling. It also gets a new, lightweight Acura-only platform that stiffens the body and adds more interior room and cargo space. Acura is also debuting a new True Touchpad Interface in the RDX that offers a unique one-to-one position with the 10.2-inch center display screen that works a little differently than a traditional cursor interface. You can read our review of it here. Related Video: Featured Gallery 2019 Acura RDX production Image Credit: Acura Plants/Manufacturing Acura Crossover acura rdx

Honda reports $2.3 billion profit despite pandemic

TOKYO — Japanese automaker Honda reported Friday that its profit rose 23% in the last quarter, despite a pandemic that has slammed businesses around the world. Tokyo-based Honda said its July-September profit was 240.9 billion yen ($2.3 billion), up from 196.5 billion yen a year earlier, as the auto market recovered in some parts of the world. Honda said it carried out aggressive cost cuts that involved a “fundamental review” of its operations. The situation was also improving from earlier this year, when lockdowns and other problems related to COVID-19 caused disruptions of some production and an inventory crunch. Quarterly sales slipped to 3.65 trillion yen ($35 billion) from 3.73 trillion yen the same period a year earlier. Honda warned that uncertainty remains amid rising COVID-19 cases. But the company stressed it was managing to cling to profitability. Reflecting that upbeat mood, Honda raised its profit forecast for the fiscal year through March 2021 to 390 billion yen ($3.8 billion) from an earlier projection for 165 billion yen ($1.6 billion). The latest forecast is still lower than the 455.7 billion yen profit Honda booked in the previous fiscal year. Honda sold slightly more vehicles in the quarter through September at 1.25 million vehicles, compared to 1.24 million vehicles in the same period of 2019. But it sold fewer motorcycles at nearly 4.5 million motorcycles, down from nearly 5.1 million. Kohei Takeuchi, a senior Honda manager, said much of the damage to sales likely came from the pandemic, though he hesitated to blame the entire decline on the pandemic. Executive Vice President Seiji Kuraishi told reporters Honda is bullish on shifting its lineup to ecological models to keep up with the global efforts to curb carbon emissions and global warming. Also Friday, Toyota raised its full year fiscal forecasts to a 1.4 trillion yen ($13.5 billion) profit, after reporting results that appear to show a gradual but sure recovery. Its profit fell 11% in the last quarter. Nissan reports financial results next week. Related Video: Earnings/Financials Acura Honda