Honda ups profit outlook as overseas sales value rises

Honda has raised its forecast for full-year operating profit by 6% as a weaker yen increased the value of its overseas sales.

Japan’s third-biggest carmaker has been struggling to shore up its operations, with profitability down more than half in the past two years due to a series of quality-related issues.

And like other global carmakers, Honda has been impacted by the coronavirus outbreak on vehicle production in China.

The company plans to re-start its factories in Wuhan, the epicentre of the disease, on February 14, executive vice president Seiji Kuraishi said, after extending the Lunar New Year holiday in line with local government directives.

There are no disruptions in China-made parts supplies that would prevent a restart of the three plants it operates in Wuhan with local joint venture partner Dongfeng Motor Group or production at other facilities globally, he said.

Fiat-Chrysler on Thursday said one of its European plants could close within two to four weeks if Chinese parts suppliers cannot get back to work soon.

Honda posted operating income of 166.6 billion yen (€1.4bn) for the last quarter of 2019, compared with 170.1 billion yen a year ago and an average forecast of 149.5 billion from analysts.

Reuters