Honda Motor said sales revenue for the third fiscal quarter of 2020/2021 rose 0.6% to JPY3,771.5bn due to an increase from its automobile business.

Operating profit rose 66.7% to JPY277.7bn “due primarily to increased efficiency of R&D expenditures and cost reduction efforts. This was despite unfavorable currency effects”, the automaker said.

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Third quarter automobile business revenue was JPY2,638.1bn, a year-on-year increase of JPY63.2bn, due primarily to an increase in sales in Japan and the US offsetting falls in Europe and Asia.

Automobile unit sales increased by 1,000 to 809,000 worldwide.

Operating profit rose JPY89.4bn to JPY123.1bn due to an increase in profit related to changes in sales volume and model mix and cost reductions. This was despite an increase in SG&A expenses. Operating profit margin also increased.

Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for the automobile business was JPY205.4bn.

Nine month sales revenue fell JPY1.926.2bn to JPY9,546.7bn due to a decrease in sales revenue from all businesses as a result of the impact of the COVID-19 pandemic.

A decrease in demand due to the impact of the COVID-19 pandemic saw consolidated operating profit for the fiscal nine months fall JPY192.2bn to JPY447.0bn due primarily to “control of selling, general and administrative (SG&A) expenses and cost reduction efforts resulting from a fundamental review of business activities conducted throughout the entire company”.

Net profit fell JPY41.1bn to JPY444.1bn.

Honda revised its previously announced forecast for consolidated operating profit for the current fiscal year (ending 31 March, 2021) upward by JPY100bn to JPY520.0bn. This was despite the impact of both the COVID-19 pandemic and the shortage of semiconductor supply.

The previously announced forecast for net profit for the full year was revised upward by JPY75bn to JPY465bn yen.