Japanese automaker Honda cuts profit outlook as sales slip

Business

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)

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

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

CBS47 On Your Side

Do you have a problem that you need help solving? Contact CBS47 and let us be On Your Side.

Phone: 559-761-0383
Email: OnYourSide@cbsfresno.com

Don’t Miss

Best of the Valley
Sunday Morning Matters
MedWatch Today
Hispanic Heritage
Bulldog Insider: The Podcast
The Valley's Armenia
Pros Who Know

Images from Armenia

Small patients in Armenia
Yerevan by night.
Dr. Jeff Thomas delivers.
Dr. Jeff Thomas delivers in Gyumri.
Doctors unpack medical supplies from The Central Valley.
Fresno Medical Mission at work.
Medical Supplies being unloaded.
Fresno Medical Mission at the ready.
KSEE24 crew witnesses the miracle of life in Gyumri, Armenia.
Life saving work of Central Valley surgeons in Armenia.
Ribbon cutting on new surgical center in Ashtarak Armenia. Fresno donors made this dream come true.
KSEE24 on assignment with the Fresno Medical Mission
Honorary Consulate to Armenia Berj Apkarian explains the crisis facing one hospital.
KSEE24's Stefani Booroojian and Kevin Mahan at the meeting with President Bako Sahakyan.
Medical Meeting in Artsakh.
The President of Artsakh meets with the Fresno Medical Mission.
Learning modern medicine techniques with the Fresno Medical Mission in surgery.
Leaning in for a look. Dr. Brien Tonkinson holds class and helps a patient in Armenia.
Fresno Medical Mission cares on one of the smallest patients in the region. Six-year old Yanna receives life-changing better breathing surgery.