Key facts
- Honda raised its full-year operating profit forecast to 780 billion yen ($4.94 billion) from 650 billion yen.
- Honda booked 484.8 billion yen in EV restructuring costs in the July-to-September quarter, causing a surprise profit drop.
- Quarterly operating profit fell 39% to 118 billion yen, below the 250 billion yen median estimate in an LSEG poll of nine analysts.
- Honda booked more than $9 billion in EV restructuring charges in the previous financial year, leading to its first annual loss in nearly 70 years in May.
- US sales rose 9% in the second quarter and accounted for half of Honda's global retail sales of 823,000 vehicles.
- Honda said on Monday it would build a $3 billion Ohio plant producing 240,000 hybrid cars a year from 2029.
Honda Motor raised its full-year operating profit forecast to 780 billion yen ($4.94 billion) from 650 billion yen on November 10, saying it expects robust demand for hybrid vehicles and a weaker yen to help offset slumping sales in China.
The company booked 484.8 billion yen in costs linked to the restructuring of its electric-vehicle business in the second quarter, causing it to report a surprise drop in profit for the period. Operating profit for the July-to-September quarter fell 39% from a year earlier to 118 billion yen, well below the 250 billion yen median forecast in a poll of nine analysts by LSEG.
Honda booked more than $9 billion in EV-restructuring-related charges in the previous financial year, pushing the firm into its first annual loss in nearly 70 years in May.
Honda is betting heavily on hybrid vehicles, particularly in the US, its top market. US sales rose 9% in the second quarter and accounted for half of its global retail sales of 823,000 vehicles.
On Monday, Honda said it would build a $3 billion auto plant in Ohio that will be able to produce 240,000 hybrid cars a year and start production in 2029.
Nikkei Asia reported that Honda raised its full-year net profit forecast to 500 billion yen, citing a weak yen offsetting EV strategy changes.