Honda first-half net profit slumps almost 20%, full-year forecast down
Japanese carmaker Honda said Friday its first-half net profit dropped 19% on negative currency exchange rates and falling motorcycle sales, slightly revising down profit forecasts for the full year.
For the April-September period, Honda posted net profit of ¥368.85-billion ($3.38-billion), down 19% from a year earlier, as sales slipped 1.8% to ¥7.725-trillion.
Car sales increased by a measly 0.4%
For the full year to March, Honda now expects ¥575-billion net profit on sales of ¥15.05-trillion, compared with ¥645-billion net profit on sales of ¥15.65-trillion in the previous forecast.
The company however said operating profit, "excluding currency effects and one-time issues, increased ¥50-billion compared with the same period last year" due to cost-cutting efforts.
Automobile sales by unit edged up 0.4%, while motorcycle sales by unit slipped 6.1% chiefly due to slowdown in the Indian market, it said in a statement.
For the full year to March, it will keep the same level of operating profit as the previous year "by steadily implementing initiatives to improve profitability" despite a higher yen, "the worsening economy in India and a decrease in sales in Japan," it said.
The announcement comes a day after its bigger rival Toyota reported record net profit and sales for the first half, with cost-cutting efforts helping to boost its balance sheet.