TOKYO: Honda Motor cut its annual profit forecast by about a fifth and posted a 25% drop in its second-quarter operating profit on Friday, as its performance took a hit from U.S. import tariffs and one-off costs related to electric vehicles.
Japan’s second-largest automaker lowered its operating profit forecast for the year through March 2026 by 21% to 550 billion yen ($3.65 billion) from 700 billion yen.
The new forecast also factored in a decline in production volumes due to an expected shortage in the supply of chips.
Honda booked a 194 billion yen ($1.29 billion) profit for July-September, compared with an average 212.1 billion yen profit expected from nine analysts polled by LSEG and a 257.9 billion yen profit in the July-September quarter in 2024.
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