By Kosaku Narioka
Honda Motor cut its annual earnings forecasts, citing a shortage of chips from Dutch supplier Nexperia, and reported lower first-half net profit due partly to U.S. tariffs.
The Japanese carmaker said Friday that net profit fell 37% from a year earlier to 311.83 billion yen, equivalent to $2.04 billion, for the six months ended September. That missed the estimate of Y342.97 billion in a poll of analysts by data provider Quick. Honda said U.S. tariffs weighed on operating profit by Y164.3 billion in its first half.
The automaker cut its group car sales forecast for the fiscal year, blaming weaker sales in Asia and a shortage of chips from Nexperia amid a dispute between the Dutch and Chinese governments over control of the semiconductor maker. It now expects group sales of 3.34 million vehicles, compared with 3.62 million forecast previously.
Honda estimated a smaller U.S. tariff drag than previously forecast, saying it expects a Y385.0 billion hit this fiscal year instead of Y450.0 billion.
For the year ending March, it projected revenue to decline 4.6% to Y20.700 trillion and net profit to drop 64% to Y300.00 billion. The company previously projected revenue of Y21.100 trillion and net profit of Y420.00 billion.
Global automakers have been hit hard by the Trump administration's tariffs, which are aimed at reducing a trade deficit and re-establishing a U.S. manufacturing base.
Toyota Motor earlier this week reported stronger second-quarter net profit and raised its full-year sales and earnings guidance, signaling its ability to withstand an expected $9 billion blow from U.S. tariffs. On Thursday, Nissan Motor posted its fifth straight quarterly net loss, driven in part by a tariff hit of more than half a billion dollars.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
11-07-25 0257ET
