earnings "Honda" 33% quarterly decline

Honda’s fiscal first-quarter profit fell 33% year-over-year due to a shortage of computer chips, a shutdown in China due to the pandemic, and rising raw material costs.

Japanese Honda Motor Co. headquartered in Tokyo, said its total profit was 149.2 billion yen ($1.1 billion) in the first quarter of the fiscal year, April to June, compared to 222.5 billion yen ($1.7 billion ) for the same period. Compared to last year, quarterly sales fell 7% to 3.8 trillion yen ($28 billion).

While Honda has kept its full-year profit forecast through March 2023 unchanged at 710 billion yen ($5.3 billion), while a semiconductor shortage has caused every automaker in the world, including Honda, to suffer losses. despite high demand.

In the final quarter of the fiscal year, Honda, maker of the Accord sedans, Odyssey minivans and Civic Compact, sold about 815,000 vehicles, up from 998,000 in the same period the previous year. Cars fell almost all over the world, including Japan, the USA and Europe.

In this regard, the CFO of the company, Kohei Takeuchi, explained, “I am reaching out to all persons who are still waiting to receive their vehicles with understanding, and I promise that our entire company will do its best to deliver the goods unilaterally. the day before the scheduled delivery date,” noting that “semiconductor shortages have reduced motorcycle production as well as automobile production,” raising doubts about the future outlook.

And Honda pointed out that “the recent closure in Shanghai was one of the reasons for the lack of supply of computer chips,” without giving details.

Source: “AB”

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