Honda has recorded a 6.7% decline in quarterly profit as vehicle and motorcycle sales slipped and an unfavorable exchange rate hurt earnings
Honda recorded a 6.7% decline in July-September profit as vehicle and motorcycle sales slipped and an unfavorable exchange rate hurt earnings at the Japanese automaker.
Honda Motor Co. reported Friday its fiscal second quarter profit totaled 196.5 billion yen ($1.8 billion), down from 210.7 billion yen the previous year.
Quarterly sales declined 2.9% to 3.7 trillion yen ($34 billion) as auto sales declined in the U.S., Japan, the rest of Asia and Europe.
Honda, which makes the Odyssey minivan and Asimo robot, said higher income tax expenses also hurt results.
The Tokyo-based company lowered its full year profit forecast through March 2020, to 575 billion yen ($5.2 billion) from the 645 billion yen ($5.9 billion) given in August, and below the 610 billion yen earned the previous fiscal year.
Honda said its financial services business did well and helped offset some of the damage from the other sections.
Honda officials acknowledged to reporters that more needed to be done to reduce costs and promised restructuring was underway.
Earlier this week, Honda’s Japanese rival Toyota Motor Corp. reported robust results. Toyota’s vehicles sales grew in key global regions, helping Japan’s top automaker post an increase in quarterly profit despite a strong yen, which hurts the earnings of Japanese exporters.
Nissan Motor Co., a Japanese automaker that has seen its brand power tarnished amid a financial misconduct scandal, reports earnings next week. Former Chairman Carlos Ghosn, who is awaiting trial, says he is innocent. Chief Executive Hiroto Saikawa has also resigned.
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