TOKYO (Reuters) – Honda Motor reported a smaller-than-expected decline in first-quarter operating profit on Wednesday and upgraded its outlook for the full year as the yen’s decline took a hit. helped mitigate the effects of reduced production and rising material costs.
Operating profit for the quarter ended June 30, the first of the Japanese group’s fiscal year, fell by 9% to 222.2 billion yen (1.61 billion euros), exceeding 200.2 billion yen expected by the 10 analysts surveyed by Refinitiv.
During the same period the previous year, Honda had recorded a profit of 243.2 billion yen.
The automaker raised its forecast for annual operating profit to 830 billion yen from 810 billion yen previously.
Like other automakers, Honda’s production has been hit by the global shortage of semiconductors and the COVID-19-related lockdowns in China, which have disrupted parts supply.
Honda was even forced, during the April-June quarter, to reduce the production of its national factories by nearly 50%.
The maker of the hugely popular Honda Accord had said production at these plants would return to normal in early June, a plan it had to push back to August due to logistics and supply chain issues.
(Satoshi Sugiyama report; French version Valentine Baldassari, told by Kate Entringer)