Tokyo (Reuters) – On Wednesday, Honda Motor Co. of Japan reported a smaller-than-expected drop in operating profit for the first quarter and raised its outlook for the full year. This was because a weaker yen helped ease some of the pain from production cuts and higher material costs.
Operating profit for the three months ending June 30 fell 9% to 222.2 billion yen ($1.65 billion), exceeding the average estimate of 200.2 billion yen from a Refinitiv poll of ten analysts.
A year ago, Honda made a profit of 243.2 billion yen during the same time period.
It increased its forecasted operating profit for the fiscal year ending March 31 from 810 billion yen to 830 billion yen.
Honda’s production was hurt by the global shortage of semiconductors and China’s COVID-19 lockdowns, which made it hard to get parts.
During the April-June quarter, Honda had to cut production at its domestic factories by as much as 50% at one point.
It had said that production at these plants would get back to normal by the beginning of June, but it had to change its plans because of problems with logistics and the supply chain.
($1 = 134.9800 yen)
Tokyo (Reuters) – On Wednesday, Honda Motor Co. of Japan reported a smaller-than-expected drop in operating profit for the first quarter and raised its outlook for the full year. This was because a weaker yen helped ease some of the pain from production cuts and higher material costs.
Operating profit for the three months ending June 30 fell 9% to 222.2 billion yen ($1.65 billion), exceeding the average estimate of 200.2 billion yen from a Refinitiv poll of ten analysts.
A year ago, Honda made a profit of 243.2 billion yen during the same time period.
It increased its forecasted operating profit for the fiscal year ending March 31 from 810 billion yen to 830 billion yen.
Honda’s production was hurt by the global shortage of semiconductors and China’s COVID-19 lockdowns, which made it hard to get parts.
During the April-June quarter, Honda had to cut production at its domestic factories by as much as 50% at one point.
It had said that production at these plants would get back to normal by the beginning of June, but it had to change its plans because of problems with logistics and the supply chain.
($1 = 134.9800 yen)
