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Honda It reported Friday that its profit for the first fiscal half through September plunged 37% from a year earlier, as losses from President Donald Trump’s tariffs were offset by solid motorcycle sales growth.
Tokyo-based Honda Motor Co reported profit of 311.8 billion yen ($2 billion) for April-September, down from 494.6 billion yen a year earlier.
sales The total in the six months came to 10.6 trillion yen ($69 billion), down about 1.5% from 10.8 trillion yen.
Honda cut its profit forecast for the fiscal year through March 2026 to 300 billion yen ($2 billion), which would be a 64% decline from 835.8 billion yen a year earlier. It had previously forecast annual profits of 420 billion yen ($2.7 billion).
Honda, which makes the Accord sedan and Odyssey minivan, said the unfavorable currency rate also hurt its bottom line, wiping 116 billion yen ($756 million) from its operating profit in six months.
But thanks to strong results, Honda achieved record sales in motorcycles Asian Regions excluding Vietnam. Honda said it sold more than 9 million motorcycles in Asia during the first half, up from 8.8 million a year earlier. Honda’s motorcycle sales improved in every global region except Europe to a record 10.7 million units sold.
Honda’s global vehicle sales in the first half fell to 1.68 million vehicles from 1.78 million. By region, vehicle sales rose in North America, but fell in Japan, the rest of Asia and Europe.
Although it helps that Honda produces many of its vehicles in the US, the company said the tariffs caused a 164 billion yen ($1.1 billion) decline in operating profit over the six-month period.
Adding to its challenges, Honda has faced a shortage of chips after the Dutch government in late September took over control of Nexperia, which is based in the Netherlands but owned by Chinese company Wingtech Technology, citing national security concerns.
In response, China halted shipments of chips from Nexperia’s plant in the southern Chinese city of Dongguan, though it has now allowed those exports to resume.
Vehicle production at Honda’s plant in Celaya, Mexico has been halted since October 28, while production at North American plants has been adjusted since October 27 due to supply disruptions related to Nexperia. Honda did not say when production would be restored to normal levels.
Honda shares rose 1.8% to 1,585 yen ($10) on Friday tokyo Trading.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama