Honda’s Revenue, Net Profit Slip
Honda Motor Co. has lowered its full fiscal year profit forecast by 6%, citing the effect of a stronger yen.
The company’s revenue for July-September fell 3% to 3.7 trillion yen ($33.8 billion) on flat new-car volume of 2.56 million units.
Operating profit for the quarter rose 3% to 220 billion yen ($2 billion), thanks to lower sales and marketing costs. But the company says its net profit slid 7% to 197 billion yen ($1.8 billion), mainly because of higher taxes in India.
Honda now predicts its unit sales in the current fiscal year ending March 31 will slip slightly to 5.18 million units.
The company says weaker revenue, coupled with adverse currency effects, will slash its operating and pretax profits for the fiscal year by 36% and 74%, respectively, compared with the previous 12-month period.
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