Honda Expects 70% Decline in Net Profit for FY 2025
Projected 70% drop in net profit amid challenging market conditions and trade uncertainties
Honda has projected a 70% decline in its net profit for the fiscal year 2025. The company's plans for a new factory are contingent upon the continuation of the USMCA, a free trade agreement between the United States, Mexico, and Canada.
Any changes to the terms of this agreement due to trade negotiations may necessitate a reevaluation of the factory plan.
In the fiscal year 2024, which ended in March, Honda's consolidated net profit decreased by 24.5% to 835.8 billion yen compared to the previous year.
The company's sales saw a modest increase of 6.2% to 21,688.7 billion yen, while its operating profit declined by 12.2% to 1,213.4 billion yen.
The decline in profits was largely attributed to increased payments for sales incentives in the competitive North American market, which affected the company's automobile operations despite a robust performance from its motorcycle business.
Any changes to the terms of this agreement due to trade negotiations may necessitate a reevaluation of the factory plan.
In the fiscal year 2024, which ended in March, Honda's consolidated net profit decreased by 24.5% to 835.8 billion yen compared to the previous year.
The company's sales saw a modest increase of 6.2% to 21,688.7 billion yen, while its operating profit declined by 12.2% to 1,213.4 billion yen.
The decline in profits was largely attributed to increased payments for sales incentives in the competitive North American market, which affected the company's automobile operations despite a robust performance from its motorcycle business.
