Honda Earnings Fall Behind American Automakers (HMC)
Honda (NYSE: HMC) released first quarter earnings Wednesday morning, with EPS at $0.69 and revenue at $28.75 billion.
Although revenue was constant compared to last year, net income was down seven percent compared to last year.
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The company sites favorable foreign currency translation for most of the 16.3 percent increase in year over year sales. The company saw its biggest growth in the financial services division while the power product division saw the biggest lag.
Because of the currency translation, operating income is a better metric for understanding the business. They company’s two biggest segments, automobile ($22.28 billion revenue) and motorcycle ($4.03 billion revenue) saw income down 4.3 and up 15.7 percent respectively.
American automakers beat sales and revenue figures earlier this month. Rival Japanese giant Toyota Motors (NYSE: TM) is expected to release earnings on Friday.
Shares of Honda closed at $37.42 on Tuesday.
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