Honda Motor Co. (HMC) posted its consolidated financial results for the fiscal second quarter on Tuesday.
The Tokyo-based motobike giant posted consolidated sales revenue of JPY 3.84 trillion, up 1.7% from the same period last year. Sales rose primarily due to increased sales revenue at its motorcycle and financial services business operations.
Consolidated operating profit for the quarter was JPY 214.4 billion, spiking 40.2% on positive impact from sales volume and model mix, and the absence of settlement losses, unlike last year.
Consolidated profit before income taxes rose 16.7% to JPY 283.0 billion, while profit attributable to owners of the parent was up 21.1% to JPY 210.7billion. Attributable EPS was JPY119.66, when one Honda American depository share represents one common share.
Honda to cruise
Earlier this month, General Motors (GM) and its subsidiary Cruise announced a partnership with Honda to develop an autonomous vehicle for Cruise. The trio announced plans to look out the global opportunities for commercial deployment of the Cruise network.
Honda will spend $2.75 billion, including about $2 billion over 12 years for these initiatives and an equity investment of $750 million in Cruise. After this deal, Cruise’s valuation had increased to $14.6 billion, which also includes the recently announced SoftBank investments.
“With the backing of General Motors, SoftBank and now Honda, Cruise is deeply resourced to accomplish our mission to deploy autonomous technology across the globe safely,” said Cruise CEO Kyle Vogt. Cruise has been prototyping a driverless vehicle over the past two years.