TOKYO (AP) — Honda’s profits slipped nearly 20% in the first half of the fiscal year from the same period the previous year, as sales suffered in China, the Japanese automaker said Wednesday.
Honda Motor Co.’s April-September profits totaled 494.68 billion yen ($3.2 billion), declining from 616 billion yen for the same period the previous year, on 10.8 trillion yen ($70.5 billion) in sales, up from 9.6 trillion yen.
Although Honda sold more motorcycles globally in the first fiscal half, boosted by healthy demand in Asia, its car sales fell, especially in China, company officials told reporters.
Warranty costs and expenses related to quality problems, as well as higher incentives, also chipped away at Honda’s profits, while foreign exchange fluctuations added drag, according to Tokyo-based Honda. The company did not break down quarterly numbers.
Honda lowered its profit forecast for the fiscal year through March by 50 billion yen ($330 million) to 950 billion yen ($6.2 billion).
That’s lower than the 1.1 trillion yen ($7.2 billion) Honda earned last fiscal year.
Domestic rival Toyota Motor Corp. reported a drop in profit earlier in the day. Nissan Motor Co. reports earnings Thursday.
Honda stock dove 6.5%, while Toyota issues gained 1.7%.
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Yuri Kageyama is on X: https://x.com/yurikageyama
Yuri Kageyama, The Associated Press