Mexican Media Brands
Honda Slashes Profit Outlook 20%
Honda Motor Co. has cut its net income forecast for the fiscal year ending March 31 by 95 billion yen ($1.2 billion) to 375 billion yen ($4.7 billion) because of unfavorable exchange rates and lower-than-expected vehicle demand, particularly in China.
#economics
Share
Honda Motor Co. has cut its net income forecast for the fiscal year ending March 31 by 95 billion yen ($1.2 billion) to 375 billion yen ($4.7 billion) because of unfavorable exchange rates and lower-than-expected vehicle demand, particularly in China.
Honda trimmed its fiscal-year revenue outlook to 9.8 trillion yen ($123 billion) from 10.3 trillion yen. The company lowered its sales target to 4.12 million vehicles from 4.30 million units. That projection includes a 17% reduction to 620,000 vehicles in China, where anti-Japan sentiment is stifling demand.
Honda reported a net profit of 82.2 billion yen ($1 billion) in the fiscal second quarter ended Sept. 30 compared with 60.4 billion yen ($761 million) year earlier. Operating income quadrupled year over year to 276.8 billion yen ($3.5 billion).
Revenue jumped 20% to 2.3 trillion yen ($28.6 billion). Sales soared 47% to 996,000 vehicles as the company rebounded from last year's earthquake-impaired volume.
Honda's quarterly earnings were sharply lower than investors expected. Analysts say it could be a signal that other carmakers will report disappointing results in the days ahead.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.