The future of Hino Motors is worrisome… Impact of engine fraud and “70% decrease in net profit”

Hino Motors

Hino Motors is in the midst of a fraudulent application for engine certification. The financial results for the second quarter of the fiscal year ending March 2023 were tough, with net income down 70% year-on-year.

The financial results for the second quarter of the fiscal year ending March 2023, announced on October 27, showed sales of 733.4 billion yen (up 6.4% year-on-year) and operating income of 16.6 billion yen (down 47.8% year-on-year). Net income decreased by 70% to 3.5 billion yen.

Together,The company also announced that it would revise its full-year operating profit forecast to 6 billion yen, down 82% year-on-year.However, it decided not to disclose the final profit and loss because it is difficult to calculate.

In this year’s financial results, a total of approximately 4.6 billion yen in extraordinary losses was recorded as recall costs and compensation losses for suppliers, etc., related to the engine certification falsification issue.

How have you been affected by the engine certification application issue and the yen’s depreciation? Let’s read the points from the financial results briefing materials.

Domestic sales volume for shipment suspension “30% decrease”, overall flat

Year-on-year changes in sales volume. Domestic sales decreased significantly, but overseas sales recovered and the number of units sold remained almost unchanged.

Year-on-year changes in sales volume. Domestic sales decreased significantly, but overseas sales recovered and the number of units sold remained almost unchanged. Please note that the figures are different from the summary of financial results because the counting method is different.

First of all, looking at sales volume by region, while domestic sales volume has decreased by about 30%, sales volume has increased especially in Asia and North America. As a result, global (overall) sales volume remained almost flat compared to the same period of the previous year.

One of the reasons for the “significant decrease in sales” in Japan is, of course, the suspension of shipments due to improper engine certification.

However, according to the financial results brief, in addition to that”Supply stagnated due to delays in vehicle production due to global shortage of semiconductors”or“Sluggish tourism demand due to the impact of the new coronavirus”The contraction of the bus market caused by this is also a factor in the decline in sales.

As a result, Hino Motors’ domestic shipments were 18,600 units, down 10,600 units from the same period last year (the figures are from the financial results).

Overseas sales recovered. In particular, the number of units sold in Indonesia has grown tremendously. In North America as well, there was a significant recovery compared to the previous year due to the resumption of production at plants that had been suspended.

Overseas sales recovered. In particular, the number of units sold in Indonesia has grown tremendously. In North America as well, there was a significant recovery compared to the previous year due to the resumption of production at plants that had been suspended.

The overseas business is on a recovery trend, mainly in ASEAN countries such as Indonesia and Thailand. In North America as well, production and sales at plants that had been suspended since the end of 2020 resumed in the second half of FY2021, and sales of heavy- and medium-duty trucks recovered significantly compared to the same period of the previous year.

Overseas sales totaled 55,800 units, an increase of 11,000 units from the same period last year.

Source: BusinessInsider

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