Honda raises full-year profit outlook, books $3 billion in EV-linked costs in Q2
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Honda raised its full-year profit outlook to 780 billion yen despite booking $3 billion in EV-linked costs during the second quarter.
- ✓Operating profit fell 39% to 118 billion yen.
- ✓Chief Financial Officer Masao Kawaguchi said, "We want to settle everything, as much as possible, within this financial year."
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- Indian Markets
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- Reuters
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- India Economy
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Honda's additional writedown on the EV business comes after it booked more than $9 billion in charges in the previous financial year, which pushed Japan's second-largest automaker into its first annual loss in nearly 70 years.
The company had made considerable progress in talks with suppliers over settling the restructuring costs, Chief Financial Officer Masao Kawaguchi said.
"We want to settle everything, as much as possible, within this financial year," Kawaguchi said, adding that Honda wanted to resolve the issue as early as possible.
The total toll of more than $12 billion is among the biggest hits from an EV restructuring by any legacy automaker.
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