TOKYO: Honda Motor Co. said Friday that it secured operating profit growth in the year that ended in March, despite a drop in sales amid the coronavirus pandemic.

The major Japanese automaker booked a group operating profit of 660,208 million yen, up 4.2 pct from the previous year, on sales of 13,170,519 million yen, down 11.8 pct.

Net profit jumped 44.3 pct to 657,425 million yen, after the company raised reserves for losses at its financial services division in the previous year.

Annual global sales of automobiles fell 5.1 pct to 4,546,000 units, while those of motorcycles slid 21.8 pct to 15,132,000 units.

The operating profit growth was attributed to cost cuts.

At an online press conference, Honda Executive Vice President Seiji Kuraishi said the company aims to improve profitability through production capacity adjustments, including a factory closure in Britain.

For the year through March 2022, Honda projected an operating profit of 660 billion yen and a net profit of 590 billion yen, on sales of 15.2 trillion yen.

Net profit would fall by 10.3 pct, reflecting higher raw materials prices, as well as chip shortages.

JIJI Press