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Honda lowers profit outlook 15% amid chip shortage

Other News Materials 5 November 2021 10:41 (UTC +04:00)
Honda lowers profit outlook 15% amid chip shortage

Honda Motor Co cut its full-year profit forecast by 15% on Friday, to 660 billion yen, as a global chip shortage has forced it to cut vehicle output, Trend reports with reference to Reuters.

Like other automakers, Honda's production plans have been hit by the shortage, with global output in September falling 30% from a year ago.

On Thursday, larger rival Toyota Motor cut its full-year sales target and warned the lack of semiconductors still posed risks to its annual production plans.

Honda's forecast, which it has cut twice since August, is lower than a mean forecast of 764.5 billion yen in profit by 20 analysts, Refinitiv data showed.

Honda cut its vehicle sales plan to 4.2 million vehicles from 4.85 million this business year, down from 4.5 million in the previous 12 months.

For the three months to Sept. 30, Honda said operating profit fell by almost a third to 198.9 billion yen. That result was higher than an average forecast of 183.5 billion based on estimates from nine analysts, Refinitiv data showed.

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