Honda Motor(US:HMC) Zhi Tong Cai Jing·2025-11-07 08:17Core Viewpoint - Honda Motor Co. has lowered its annual profit forecast by approximately 20%, citing a 25% decline in operating profit for the second fiscal quarter due to U.S. import tariffs and one-time costs associated with electric vehicles [1] Financial Performance - The revised annual operating profit forecast for the fiscal year ending March 2026 is now 550 billion yen (approximately $3.65 billion), down from the previous estimate of 700 billion yen, reflecting a 21% reduction [1] - For the quarter from July to September, Honda reported an operating profit of 194 billion yen (approximately $1.29 billion), which fell short of the average analyst expectation of 212.1 billion yen and decreased from 257.9 billion yen in the same period last year [2] - For the six months ending September 30, 2025, the company experienced a significant decline in comprehensive profit attributable to owners, which dropped 37% to 311.8 billion yen (approximately $2.03 billion) [3] - The diluted earnings per share for the same period were 76.30 yen, down from 103.25 yen year-over-year [3][4] Market Conditions - The company’s revenue for the first half of the fiscal year 2026 was 10.6 trillion yen, reflecting a slight decline of 1.5% year-over-year, indicating challenges in the macroeconomic environment and currency fluctuations [3] - The operating profit for the same period decreased by 41% to 438.1 billion yen, attributed to rising raw material costs and slow recovery in major export markets [3][4]