Honda warns that the operating result for the fiscal year that began in April will remain at around 500 billion yen (approximately 33 billion kronor). This is a significantly darker forecast than the average forecast among analysts, which was at 1,350 billion yen.
Honda's operating profit for the fiscal year that ended on March 31 this year was 1,210 billion yen.
The result is expected to be weighed down, among other things, by the effects of US tariffs and what Honda calls recovery costs totaling 450 billion yen, according to the forecast.
Honda Motor announces simultaneously – citing decreased demand – that it is pausing the plan to establish a supply chain for the production of electric vehicles in Ontario, Canada, for two years.
Honda's business model is sensitive to US tariffs, which currently stand at 25 percent for cars and auto parts. Last year, Honda sold 1.4 million cars in the US, of which 40 percent were imported cars.
