Honda Lowers Full-Year Profit Forecast

Tokyo, Nov. 7 (Jiji Press)–Honda Motor Co. on Friday lowered its full-year consolidated net profit forecast for the fiscal year ending in March 2026 to 300 billion yen from the previous projection of 420 billion yen. The impact of high tariff measures by the administration of U.S. President Donald Trump reduced its profit. Also, the Japanese automaker took into account production halts and cuts at its overseas plants due to semiconductor shortages, whose impact is estimated at 150 billion yen. Honda also lowered its full-year operating profit forecast, to 550 billion yen from 700 billion yen, reflecting disruptions of supplies from a Chinese semiconductor manufacturer amid the U.S.-China trade conflict. Honda Vice President Noriya Kaihara told a press conference that production at factories abroad is expected to return to normal between Nov. 17 and 21. In the April-September first half, Honda’s consolidated net profit fell 37.0 pct from a year before to 311,829 million yen, with U.S. tariffs hitting profits by 164.3 billion yen. Meanwhile, another Japanese automaker Mazda Motor Corp. reported a net loss of 45.2 billion yen for the six-month period through September 2025, also pressured by U.S. tariff measures, down from the year-before profit of 35.3 billion yen. Mazda’s first-half sales decreased 6.5 pct to 2,238.4 billion yen, resulting in an operating loss of 53,879 million yen, falling from the year-before profit of 103,048 million yen. The negative impact of U.S. tariffs was 97.1 billion yen. The United States accounts for about 30 pct of Mazda’s global sales, but local production is limited, making the company reliant on exports from Japan and Mexico. Its global vehicle sales dropped 3 pct in April-September, with increases in Japan but declines in Europe, China and the United States. Mazda Senior Managing Executive Officer Jeffrey Guyton told a press conference that the company is in a difficult business environment, citing U.S. tariff trends as a source of uncertainty. The company maintained its full-year forecasts for sales, operating profit and net profit. END [Copyright The Jiji Press, Ltd.]