Honda’s Quarterly Profit Plunges 71%

February 01, 2019 at 9:22 AM

Honda Motor Co. says a 5% gain to 1.41 million vehicle sales was offset by a poorer mix that left revenue flat at 4 trillion yen ($36 billion) in the fiscal third quarter ended Dec. 31.

The company’s operating profit skidded 40% to 170 billion yen ($1.5 billion), and net income plummeted 71% to 168 billion yen. Honda says unfavorable exchange rates cost it 42 billion yen ($385 million).

Profits in North America and Europe shrank 53% to 50 billion yen ($459 million) and 49% to 1.3 billion yen ($12 billion), respectively.

Honda expects the full fiscal year ending March 31 will result in 2% greater unit sales (to 5.29 million vehicles) but lower net income (-34% to 695 billion yen/$6.3 billion). The company’s previous guidance predicted a 36% drop in net earnings.