Honda has revised down its full year profit forecast after operating income fell in both the third quarter and first nine months of its fiscal year.
Operating income for the fiscal third quarter to 31 December, 2014 fell 22.5% due to “a difficult automobile market environment in Japan” and “an increase in quality-related expenses [read: Takata airbag-related recalls – ed] mainly in North America”.
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This was offset by an increase in motorcycle sales in Asia and depreciation of the yen.
Net income fell 15.1% to JPY136.5bn, a decrease of 15.1% compared to the same period last year.
Nine-month operating income fell 7.7% to JPY539.7bn and net income dipped 5.3% to JPY424.9bn.
Honda continues to expect falling sales in Japan and China and more recall expenses mainly in North America so reduced its operating income forecast JPY50bn to JPY720bn. It has also shaved JPY20bn from its net profit expectation, now JPY545bn.
The quarterly dividend for the fiscal third quarter will be 22 yen per share, a 2 yen increase compared to the quarterly dividend for the same period last year. The total cash dividend to be paid for the fiscal year ending March 31, 2015 is expected to be 88 yen per share, an increase of 6 yen per share from the previous fiscal year.
