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Honda’s Net Profit Falls 29%

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Honda Motor Co.’s adjusted net profit dropped 29% to 172 billion yen ($1.6 billion) in the fiscal first quarter ended June 30.

The company’s operating profit for the period fell 16% to 252 billion yen ($2.4 billion) as demand for motorcycles fell 8%. Consolidated revenue dipped less than 1% to 4 trillion yen ($37.5 billion).

Honda’s automotive business saw quarterly revenue decline 3% to 2.8 trillion yen ($25.8 billion) in April-June. Global vehicle sales rose 1% to 1.32 million units, thanks to gains in Japan and Asia. Unit sales in the U.S. declined 4% to 407,000 vehicles.

First-quarter automotive segment profit fell 21% to 120 billion yen ($1.1 billion), according to the company.

Honda lowered its estimated global passenger vehicle sales through March 2020 by 1% to 5.11 million units, compared with last year’s record 5.32 million units. But the company confirms its forecast for an operating profit of 770 billion yen ($7.2 billion).

Honda said in May that its goal is to lower production costs 10% by 2025, largely by reducing its array of region-specific model variants.

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