Honda Motor Co. Friday lowered its consolidated sales and net profit forecasts for the year ending next March, citing the yen’s strength and falling vehicle sales.
This marked the second downward revision by the Japanese automaker in its sales and profit outlook for the year, following a cut in August.
The company now forecasts its sales at 15.05 trillion yen, down 600 billion yen from the previous forecast and down 5.3 percent from the previous year’s results.
Honda lowered its net profit estimate by 70 billion yen to 575 billion yen, down 5.8 percent from the previous year. Previously, the company had forecast a profit increase.
It now assumes an exchange rate of 107 yen to the dollar for the year, compared with 110 yen projected earlier.
The automaker lowered its global vehicle sales forecast by 135,000 units to 4,975,000 units, the first fall below five million units in four years.
The lower forecast reflects stalled production of the N-WGN mini-vehicle due to parts supply shortages and a slowdown in the Indian economy.