2:20 pm, February 9, 2022
Honda saw its profit drop by 32 per cent in the last quarter of 2021 amid increasing costs of raw materials and the shortage of semiconductors.
The Japanese car giant said today (Feb 9) that it made a profit of 192.9bn yen (circa £1.23bn) for the three months to December 31 – down from 284bn yen (£1.8bn) the year before.
Quarterly sales revenue, meanwhile, slipped by two per cent to 3.7trn yen (£23.6bn).
As with all the other car makers around the world, Honda’s manufacturing has also been affected by delays caused by coronavirus restrictions, and it said it expected the challenges to continue.
Rising raw material costs are a problem as well, but Honda said cost-cutting efforts had meant it could raise its profit projection.
Its full-year profit forecast to March 31, 2022 is now 670bn yen (£4.3bn) – up 21 per cent from an earlier projection of 555bn yen (£3.6 billion) and an improvement on the 657bn (£4.2bn) it made in the previous financial year.
Meanwhile, it now expects sales revenue for the year to reach 14.55trn yen (£92.5bn) – a 0.3 per cent dip from its earlier forecast of 14.6trn yen (£93.1bn).
Its sales revenue in the previous financial year was 13,170.5trn yen (£84.06bn), meaning this year’s will be a 10.5 per cent increase.
