Honda posts 16% rise in Q2 operating profit, missing estimates

JAPAN’S Honda Motor on Wednesday (Nov 9) posted a smaller-than-expected 16 per cent rise in second-quarter profit, helped by higher pricing and a weak yen, even as the semiconductor shortage disrupted vehicle production.

Operating profit totalled 231.2 billion yen (S$2.2 billion)in the three months to end-September, short of the average estimate of 243.3 billion yen in a poll of 10 analysts by Refinitiv. The same period a year earlier, the company earned 198.9 billion yen.

Honda raised its full-year operating profit forecast to 870 billion yen from 830 billion yen for the year ending Mar 31 mainly helped by weak yen. That compares with a 922.05 billion yen average forecast by 24 analysts.

The automaker was forced to consistently cut vehicle production at two domestic factories as Covid-19 outbreaks and semiconductor shortages caused delays in parts shipments. Production of its Vezel sport-utility vehicle, Stepwgn minivan and Civic compact car were all hit.

Its global vehicle production for the first six months of financial year was down 6.1 per cent year on year while domestic production was up 5.5 per cent year on year. REUTERS