Yuri Kageyama, Associated Press
Published Friday, November 8, 2019 4:02 EST
TOKYO – Honda has become the latest automaker to report weaker gains as global demand declines.
The company said Friday its July-September profit fell 6.7 percent from a year earlier to 196.5 billion yen ($ 1.8 billion) as sales of vehicles and motorcycles fell.
An unfavorable exchange rate also hurt earnings, the Tokyo automaker said.
Honda Motor Co.'s quarterly revenue declined 2.9% to 3.7 trillion yen ($ 34 billion), with sales declining in the US, Japan, the rest of Asia and Europe.
Honda, which makes the Odyssey minivan and Asimo robot, said higher tax expenses also hurt results.
Honda reduced its fiscal year net profit forecast by March 2020 to 575 billion yen ($ 5.2 billion). This is below the estimate of 645 billion yen ($ 5.9 billion) provided in August and below the 610 billion yen gained in the previous fiscal year.
Honda said its financial services business did well, helping to offset some of the damage from other divisions.
Honda employees told reporters that more needed to be done to reduce costs. They said a promised restructuring was underway.
Earlier this week, Japanese rival Honda Motor Toyota reported that its sales have grown in major global regions, helping Japan's top automakers increase quarterly net profit despite a strong yen, which undermines the gains of Japanese exporters.
Nissan Motor Co., a Japanese automaker that has seen its brand spotted amid a scandal of financial misconduct, reports earnings next week.