The main reason is the duties in the US and one-time losses associated with the production of electric cars.
According to the company’s report, the operating profit of Japan’s second-largest automaker for the quarter amounted to 244.2 billion yen ($1.66 billion). This figure was 20% worse than the average forecast of analysts.
The company explained that only 27.5% duties on car imports to the United States (the previous rate of 2.5% plus the new rate of 25%) reduced its operating profit for the quarter by 125 billion yen.
Despite the weak results, Honda raised its full-year operating profit forecast from 500 billion yen to 700 billion yen.
This is because the automaker revised downward its estimate of the annual impact of U.S. duties from 650 billion yen to 450 billion yen. In addition, the company now expects the yen exchange rate to be weaker than previously forecast, which is positive for its export earnings.
Nissan had previously said it expected a loss of 700-750 billion yen for fiscal 2024, which ended in March.
The car company attributed this to asset impairment and restructuring costs. Previously, it had forecast an annual loss of about 80 billion yen.
