TOKYO (NWN) – Japanese automaker Honda lowered its profit and vehicle sales forecast for the fiscal year, pointing to a shortage of computer chips and rising material costs on Friday.
Honda Motor Co. reported a 31% drop in its fiscal second-quarter profit to 166.6 billion yen ($1.5 billion) from 240.9 billion yen last year.
Quarterly sales declined 7% to 3.4 trillion yen ($30 billion).
Honda is one of several global manufacturers battling a shortage of computer chips due to disruptions related to the pandemic.
Honda’s executive vice president Seiji Qureshi apologized for the problem.
“We are very sorry for all the people who are eagerly waiting for our cars,” he said, leaning slightly at a news conference.
Qureshi said the supply situation has started to improve, but Honda’s production recovery is unlikely to come in this financial year. Honda plans to ramp up production to make up for the loss in the next fiscal year, and that current problems will not hurt investments in future technology such as electric vehicles, he said.
Honda expects profit of 555 billion yen ($4.9 billion) for the fiscal year through March 2022. That’s down 16% from the previous fiscal year, and lower than an earlier forecast for a profit of 670 billion yen ($5.9 billion).
Honda, which manufactures the Accord sedan, Cross Cub 110 motorcycle and Asimo humanoid robot, sold 917,000 vehicles in the July-September period, up from 1.25 million vehicles last year.
Tokyo-based Honda now expects to sell 4.2 million vehicles for the fiscal year through March 2022. It had earlier estimated sales of 4.85 million vehicles. Honda sold 45 lakh vehicles in the last financial year.
Yuri Kageyama is on Twitter https://twitter.com/yurikageyama