Honda Raises Annual Profit Forecast Amid EV Restructuring Costs and Hybrid Demand
Honda has raised its full-year operating profit forecast by 20% to 780 billion yen, driven by strong demand for hybrid vehicles and a favorable weaker yen. This upward revision aims to offset declining sales performance in the Chinese market. Despite the optimistic annual outlook, Honda reported a significant quarterly setback. Operating profit for the July-to-September quarter fell 39% year-on-year to 118 billion yen, missing analyst expectations due to 484.8 billion yen in restructuring costs related to its electric vehicle business. The company continues to pivot toward hybrids, highlighted by a planned $3 billion manufacturing plant in Ohio scheduled to begin production in 2029.
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Topics: automotive industry earnings report electric vehicles hybrid vehicles profit outlook