Honda has announced its financial year 2021 (FY2021) results, which saw the Japanese automaker hit an operating profit of 660.2 billion yen. While the figure is an increase from the 633.6 billion yen recorded in FY2020, it is still less than analysts’ estimates, Reuters reports.

The company’s operating profit took a severe beating in the first quarter of FY2021, but in the subsequent quarters, has consistently been in the black. The final quarter saw an operating profit of 213.2 billion yen, which was a 218.8% gain from what was seen in the same period during FY 2020.

While the results are certainly encouraging, the company is opting to be conservative about its performance for the current financial year (FY2022), mainly due to the global semiconductor shortage and higher cost of raw materials.

Honda’s FY2021, which ran from April 1, 2020 to March 31, 2021, saw the company deliver 4.546 million cars. This is 244,000 less units than in FY2020, with the lower demand resulting from the impact brought on by the Covid-19 pandemic.

Similarly, Honda motorcycle sales amounted to just 15.132 million, or 21.8% less than what was achieved in FY2020. Meanwhile, the company’s Life Creation division (lawnmowers, generators, etc.) also saw a decline of 1.4% to 5.623 million units compared to FY2020.

For FY2022, Honda is expecting sales to increase across the board, starting with a gain of around 10% for its cars to five million units, largely driven by expected demand in North America. It also intends to see a 19% increase in motorcycles to 18 million units, pushed by demand in Asia, as well as a 4.9% hike in Life Creation to 5.9 million units. Despite these projections, the company is expecting operating profit to take a slight decline to 660 billion yen, as a result of the reasons mentioned.