Honda's sales, profit drop amid rising costs, chip shortages

By AP News

Share:

In this article

  • Loading...
  • Want to see what you should be buying? Check out our top picks.

TOKYO (AP) — Honda’s profit dropped 32% in the last quarter as rising material costs and a shortage of computer chips hurt the Japanese automaker.

TOKYO (AP) — Honda’s profit dropped 32% in the last quarter as rising material costs and a shortage of computer chips hurt the Japanese automaker.

Honda Motor Co.’s profit for the three months through December totaled 192.9 billion yen ($1.7 billion), down from 284 billion yen the year before, the Tokyo-based company said Wednesday.

Quarterly sales slipped 2% to 3.7 trillion yen ($32 billion).

Like the rest of the world’s automakers, Honda’s manufacturing also has been affected by delays due to measures to curb coronavirus outbreaks. Japan’s top automaker Toyota reported a similar drop in profit.

Honda, which makes the Accord sedan, Gold Wing motorcycles and Asimo robot, said it expects the challenges to persist.

Rising material costs are also a problem, but the company said cost-cutting efforts allowed it to raise its profit projection.

It raised its full fiscal year profit forecast to 670 billion yen ($5.8 billion) from an earlier projection of 555 billion yen ($4.8 billion), an improvement from the 657 billion profit earned in the previous fiscal year.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Share:

In this article:

Industries:
Information Technology
Consumer Discretionary
Companies:
Honda Motor
Toyota Motor

Author: AP News

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Originally published by Associated Press Valuethemarkets.com, Digitonic Ltd (and our owners, directors, officers, managers, employees, affiliates, agents and assigns) are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above.

Sign up for VTM Updates

Form submitted successfully!

VTM Exclusive Reports

Crypto Corner

Learn your NFTs from your BTCs