TOKYO (AP) — Honda reported Friday that its profit for the first fiscal half through September fell 37% from the previous year, as the damage from President Donald Trump’s tariffs offset the lift from solid motorcycle sales.
Tokyo-based Honda Motor Co. recorded a 311.8 billion yen ($2 billion) profit for April-September, down from 494.6 billion yen a year before.
Sales over the six months totaled 10.6 trillion yen ($69 billion), down 1.5% from nearly
10.8 trillion yen.
Honda lowered its profit projection for the fiscal year through March 2026 to 300 billion yen ($2 billion), which would be a decline of 64% from 835.8 billion yen the year before. It had earlier forecast a 420 billion yen ($2.7 billion) annual profit.
Honda, which makes the Accord sedan and Odyssey minivan, said an unfavorable currency rate also hurt its bottom line, erasing 116 billion yen ($756 million) from its operating profit over the six months.
But Honda achieved record sales in motorcycles, led by strong results in the Asian region, excluding Vietnam. Honda said it sold more than 9 million motorcycles in Asia during the first half, up from 8.8 million a year ago. Honda’s motorcycle sales improved in every global region, except for Europe, at a record 10.7 million units sold.
Honda’s global vehicle sales in the first half totaled 1.68 million vehicles, down from 1.78 million. By region, vehicle sales grew 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 U.S., tariffs caused a decline of 164 billion yen ($1.1 billion) in operating profit over the six-month period, the company said.
Adding to its challenges, Honda has faced a chips shortage after the Dutch government in late September took control of Nexperia, which is based in the Netherlands but owned by Chinese company Wingtech Technology, citing national security concerns.
In response, China blocked 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 halted since Oct. 28, while production at North American plants were adjusted, starting Oct. 27, due to the Nexperia-related supply disruptions. Honda did not give a date on when production will be restored to normal levels.
Honda stocks on Friday gained 1.8% to 1,585 yen ($10) in Tokyo trading.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
