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Bloomberg
Honda Motor Co cut its annual profit forecast as sluggish global vehicle demand and supply issues weigh on the Japanese carmaker, which unveiled a 100 billion yen ($915 million) share buyback.
Operating profit for the fiscal year ending March will be 690 billion yen instead of 770 billion yen, the company said in a statement.
Analysts are predicting a full-year profit of 748 billion yen on average. The revenue forecast was cut to 15.05 trillion yen from 15.65 trillion yen, following a prior revision in August.The weak outlook by Honda and other smaller Japanese carmakers contrast with Toyota Motor Corp, which is sticking by its profit forecast thanks to healthy sales in the US and Japan.
Even amid weaker demand, global automakers are figuring out ways to survive the industrial shift toward electronic vehicles and self-driving technology. Last week, Honda and Hitachi Ltd agreed to merge four of their car parts businesses.