Honda Motor on Friday (26 June) restated its financial results for the fiscal year to 31 March, 2015 to account for additional costs to cover an expanded recall of cars equipped with Takata airbag parts.
According to Reuters, the automaker revised down operating profit to JPY606.88bn (US$4.92bn) under US accounting standards from JPY651.68bn announced in April. That’s down 19% year on year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under international accounting standards, which Honda adopted from this year, operating profit was JPY670.6bn, also down 19%, in results announced under the new standards for the first time.
Honda had said earlier this month it would restate its results due to additional costs in the US related to Takata airbag recalls of JPY44,800m (about US$363m).
A Honda spokesman told Reuters at the time the US accounting rules meant the charges had to be booked in the previous fiscal year rather than the current year.
Takata is at the centre of the recall of millions of vehicles equipped with air bag inflators which can explode with too much force and spray metal fragments inside vehicles.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
