Honda has posted a 4.1% decline to operating income in the quarter through to September 30 citing softer demand in North America and Japan as factors that weighed down on profitability.
The company said that the result came in spite of profit increasing factors such as favourable model introductions in Asia and efforts to reduce cost.
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Honda also said that the previously announced forecast for consolidated net sales and other operating revenue was revised down from 12.8 trillion yen to 12.75 trillion yen due to lower sales in in Japan and China “due to the difficult business environment”.
However, consolidated income before income taxes for the fiscal second quarter amounted to 179.8 billion yen, an increase of 8.6% compared to the same period last year. Consolidated net income for the fiscal second quarter amounted to 141.8 billion yen, an increase of 17.9% compared to the same period last year.
Over the past year, Honda’s bottom line has been shored up by cost cuts and a weaker yen. However, a recent rise in the consumption tax in Japan has hit sales in the domestic market.
