Japanese automaker Honda reports lower profits as China sales decline
Honda said its profits slipped nearly 20% in the first half of the fiscal year from the same period the previous year, as sales suffered in China, the Japanese automaker
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Honda’s profits slipped nearly 20% in the first half of the fiscal year from the same period the previous year, as sales suffered in China, the Japanese automaker said Wednesday.
Honda Motor Co.’s April-September profits totaled 494.68 billion yen ($3.2 billion), declining from 616 billion yen for the same period the previous year, on 10.8 trillion yen ($70.5 billion) in sales, up from 9.6 trillion yen.
Although Honda sold more motorcycles globally in the first fiscal half, boosted by healthy demand in Asia, its car sales fell, especially in China, company officials told reporters.
Warranty costs and expenses related to quality problems, as well as higher incentives, also chipped away at Honda’s profits, while foreign exchange fluctuations added drag, according to Tokyo-based Honda. The company did not break down quarterly numbers.
Honda lowered its profit forecast for the fiscal year through March by 50 billion yen ($330 million) to 950 billion yen ($6.2 billion).
That’s lower than the 1.1 trillion yen ($7.2 billion) Honda earned last fiscal year.
Domestic rival Toyota Motor Corp. reported a drop in profit earlier in the day. Nissan Motor Co. reports earnings Thursday.
Honda stock dove 6.5%, while Toyota issues gained 1.7%.
___
Yuri Kageyama is on X: https://x.com/yurikageyama
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.