Although Honda’s quarterly profit increased almost 63%, the automaker lowered its full-year profit forecast due to sales drop in China.
For the October-November period the Japanese automaker reported a 77.4 billion yen ($850 million) profit, with quarterly sales up 25% to 2.4 trillion yen ($26 billion). All Japanese automakers managed to recover form the natural disasters which hit Japan in 2011 and are reporting increased sales in the US and several Asian countries, among which India and Indonesia. Sales in China are still sluggish as the anti-Japanese sentiment which flared last September hasn’t faded away.
Honda keeps its sales forecast for this fiscal year through March at 9.8 trillion yen ($108 billion), but decreased its net profit target by 5 billion yen ($55 million) to 370 billion yen ($4 billion). This new forecast is still with 75% higher compared with the result from the previous fiscal year. Honda said it expected to sell 4.1 million vehicles during this fiscal year, but it lowered its target because of the problems in China. Toyota and Nissan, which are to report earnings next week, are also expected to announce a robust recovery in the Japanese auto market.