Honda Motor Co. forecast profit for the current fiscal year, slightly exceeding analysts’ projections, thanks to a recovery in automobile production, drops in some material prices, as well as robust sales of motorcycles. Honda also said it plans to buy back as much as ¥200 billion ($1.5 billion) yen worth of its own shares.

Operating profit for the period through March 2024 will be ¥1 trillion, the company said in a statement Thursday. That compares with analysts’ average projection for ¥996 billion. Honda said net sales are on track to reach ¥18.2 trillion, in line with the ¥18.1 trillion the market is looking for.

Honda’s finances have been bolstered by its motorcycle division as it seeks secure supplies of semiconductors and other materials for automobiles. The company is aiming to only sell electric cars globally by 2040 and have EVs represent 100% of its sales in China by 2035. Even so, Honda has yet to roll out a mass-market EV, although it is working with Sony Group Corp. to launch an electric vehicle under a different brand called Afeela.

For the fiscal year ended March, Honda reported operating profit of ¥839 billion, falling short of analysts’ projection for ¥892.5 billion and its own forecast of ¥870 billion. Sales rose 16% to ¥16.9 trillion, compared with analysts’ prediction for ¥17 trillion.

In April, Honda Chief Executive Officer Toshihiro Mibe said the company will collaborate with Taiwan Semiconductor Manufacturing Co. on the procurement of chips in order to smooth over any supply disruptions. The Japanese company is also in talks with other chipmakers.

Honda also said it signed an agreement with GS Yuasa Corp. to start a joint venture to develop lithium-ion batteries.