Japanese automaker Honda cuts profit outlook as sales slip

AP

Print Article

  • In this July 8, 2019, photo, Honda cars wait to be exported at Yokohama port, near Tokyo. 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, Nov. 8, 2019. (AP Photo/Koji Sasahara)

  • 1

    FILE - In this Jan. 9, 2017, file photo, a new Honda Odyssey minivan is unveiled at the North American International Auto Show, in Detroit. 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, Nov. 8, 2019. (AP Photo/Tony Ding, File)

  • In this July 8, 2019, photo, Honda cars wait to be exported at Yokohama port, near Tokyo. 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, Nov. 8, 2019. (AP Photo/Koji Sasahara)

  • 1

    FILE - In this Jan. 9, 2017, file photo, a new Honda Odyssey minivan is unveiled at the North American International Auto Show, in Detroit. 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, Nov. 8, 2019. (AP Photo/Tony Ding, File)

TOKYO (AP) Honda has become the latest automaker to report weaker earnings as global demand softens.

The company said Friday that its profit in the July-September fell 6.7% from a year earlier to 196.5 billion yen ($1.8 billion) as vehicle and motorcycle sales slipped.

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

Honda Motor Co.'s quarterly revenue declined 2.9% to 3.7 trillion yen ($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 ($5.2 billion). That's down from the 645 billion yen ($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.

Earlier this week, Honda's Japanese rival Toyota Motor Corp. reported its sales grew in key global regions, helping Japan's top automaker post an increase in quarterly net 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.

___

Follow Yuri Kageyama on Twitter at https://twitter.com/yurikageyama

On Instagram https://www.instagram.com/yurikageyama/?hl=en

Print Article

Read More Business

Another cut in cod fishing not enough for environmentalists

AP

December 06, 2019 at 4:52 am | PORTLAND, Maine (AP) Fishing regulators are proposing another cutback to the catch limits for Atlantic cod, but some environmentalists say the move isn't significant enough to slow the loss of...

Comments

Read More

China waiving tariff hikes on US soybeans, pork

AP

December 06, 2019 at 4:18 am | China is waiving punitive tariffs on U.S. soybeans and pork while the two sides negotiate a trade deal, the Ministry of Finance said Friday. Beijing promised in September to lift the tariffs, add...

Comments

Read More

AP Top Business News at 5:28 a.m. EST

AP

December 06, 2019 at 4:30 am | Saudi Aramco plans $25.6B share sale in biggest ever IPO...

Comments

Read More

China waiving tariff hikes on US soybeans, pork

AP

December 06, 2019 at 5:00 am | BEIJING (AP) China's finance ministry says Beijing is waiving tariff hikes on U.S. soybeans and pork while the two sides negotiate a trade deal. China promised in September to lift the tariffs...

Comments

Read More

Contact Us

(608) 365-8811
149 State Street
Beloit, WI 53511

©2019 Beloit Daily News Terms of Use Privacy Policy
X