Honda doubles profit forecast, boosted by China rebound

Honda doubles profit forecast, boosted by China rebound

Honda Motor Co on Friday more than doubled its full-year operating profit forecast as it reported second-quarter earnings grew 28per cent amid a rebound in China after auto sales were squeezed by the impact of the coronavirus pandemic.

People are reflected on a Honda Motor car outside the company's headquarters in Tokyo
FILE PHOTO: People are reflected on a Honda Motor car outside the company's headquarters in Tokyo, Japan Feb 2, 2017. (REUTERS/Toru Hanai)

TOKYO: Honda Motor Co on Friday more than doubled its full-year operating profit forecast as it reported second-quarter earnings grew 28per cent amid a rebound in China after auto sales were squeezed by the impact of the coronavirus pandemic.

Japan's third-biggest automaker said it now forecasts a full-year operating profit of 420 billion yen (US$4.06 billion) up from a previous prediction of a 200 billion yen profit.

That was well above an average estimate for a 254.6 billion yen profit compiled from 19 analysts polled by Refinitiv.

For the second quarter, operating profit came in at 283 billion yen, up from 220 billion yen in the same period a year earlier.

(US$1 = 103.5400 yen)

(Reporting by Tim Kelly; Editing by Kenneth Maxwell)

Source: Reuters

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