Market Flux Event
Honda Lifts Full-Year Net Profit Forecast to 500 Billion Yen While Taking 3 Billion Dollar EV Write-Down
Read this in the Market Flux appHonda Motor raised its full-year net profit forecast to 500 billion yen ($3.1 billion), up from a prior target of 400 billion yen, driven by a persistently weak yen that boosted overseas earnings and solid North American vehicle demand. The upgrade came alongside a mixed set of second-quarter results that included roughly $3 billion in EV-linked costs booked during the period.
The charges reflect the fallout from Honda's ill-timed push into electric vehicles and are prompting the automaker to revise a business plan that had been heavily focused on EVs. Despite those restructuring costs dragging second-quarter profit lower, first-half earnings grew, giving Honda room to lift its annual guidance.
A weaker yen cushioned the financial impact of the company's retreat from its EV ambitions by inflating the yen value of overseas revenues, particularly from North America, where demand for Honda vehicles remained firm.
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Sources
- PiQMarketsHonda raises full-year net profit forecast to 500 billion yen Honda Motor on November 10 raised its full-year net profit forecast to 500 billion yen ($3.1 billion) from 400 billion yen, citing a persistently weak yen that cushions the cost of its retreat from electric vehicles. The Japanese automaker is also revising a business plan that had been heavily focused on EVs.
- BusinessHonda raised its full-year profit forecast in a mixed set of results that showed the lingering fallout of its ill-timed bet on electric vehicles
- NasdaqHonda Motor Earnings Up In H1; Raises FY27 Outlook
- WsjHonda Raises Guidance After First-Half Profit Growth
- Seeking AlphaHonda raises FY2027 profit outlook despite EV restructuring costs and China weakness