Honda top and bottom line weak for quarter

Business | 8 Nov 2019 5:57 pm

Janpan's Honda Motor has become the latest automaker to report weaker earnings as global demand softens.

The company said profit in the July to September quarter fell by 6.7 percent from a year earlier to 196.5 billion yen (US$1.8 billion) as vehicle and motorcycle sales slipped.

An unfavorable exchange rate also hurt earnings, the Tokyo-based automaker said.

Honda Motor's quarterly revenue declined by 2.9 percent to 3.7 trillion yen (US$34 billion) as sales declined in the U.S., Japan, the rest of Asia and Europe.

Honda, which makes the Odyssey minivan and Asimo robot, said higher tax expenses also hurt results.

Honda lowered its full-year net profit forecast for the fiscal year through March 2020 to 575 billion yen (US$5.2 billion). That’s down from the 645 billion yen (US$5.9 billion) estimate given in August, and below the 610 billion yen earned in the previous fiscal year.

Honda said its financial services business did well, helping to offset some of the damage from other divisions.

Honda officials acknowledged to reporters that more needed to be done to reduce costs. They said a promised restructuring was underway.-AP


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