Summary
Honda reported a 37% drop in profits for the first half of the fiscal year due to factors such as tariffs imposed by President Trump and unfavorable currency exchange rates. Although the company saw record sales in motorcycles, especially in Asia, it faced challenges from a global chip shortage, impacting vehicle production in North America and Mexico. Honda adjusted its profit expectations for the fiscal year, lowering it significantly compared to the previous year.
Key Facts
- Honda's profit fell by 37% for the first half of the fiscal year through September.
- The reported profit was 311.8 billion yen ($2 billion), down from 494.6 billion yen ($3.2 billion) the previous year.
- Sales totaled 10.6 trillion yen ($69 billion), a decrease of 1.5% from the previous year.
- Honda lowered its profit forecast for the fiscal year to 300 billion yen ($2 billion).
- Tariffs led by President Trump resulted in a 164 billion yen ($1.1 billion) decline in operating profit.
- Record motorcycle sales were achieved in Asia, with over nine million units sold.
- Global vehicle sales at Honda were 1.68 million, down from 1.78 million the previous year.
- Production was impacted by a chip shortage due to issues with Dutch-based company Nexperia, affecting North American and Mexican operations.
