Honda trims full-year profit forecast, says China sales poorer
TOKYO (REUTERS) - Honda Motor has trimmed its annual net profit forecast by 1.3 per cent to 370 billion yen (S$5 billion) on poorer-than-expected car sales in China and Europe, even as it sees strong sales in the United States, its biggest market.
Japan's third-biggest automaker said its net profit for Oct-Dec was 77.4 billion yen, compared with the 47.7 billion yen booked last year when it suffered from disrupted supply chains after floods hit it and its suppliers' factories in Thailand.
"The market had expected the company to release a bright outlook on the back of a weakening yen," said Mr Yoshihiro Okumura, an analyst at Chibagin Asset Management. "It was negative that the company did not raise its full-year outlook. Now, investors will be watching how the carmaker will try to raise sales in the core US market this year."
Honda, which relies on the US for 40 per cent of its global sales, maintained its North American car sales forecast for the year to March. For rivals Toyota Motor and Nissan Motor, the US accounts for about a quarter of global auto sales.