Toyota And Honda's Profits Drop Due To Challenges In China

On Wednesday, Toyota Motor Corporation (NYSE: TM) issued its fiscal second quarter results, posting a weaker-than-expected profit due to production halts and macroeconomic events.  Its smaller domestic rival, Honda Motor Co. Ltd. (NYSE: HMC) reported a surprising decrease in operating profit that was dragged down by a significant sales drop in China.

Honda’s disappointing Q2 results reflect significant hit from unfavorable market conditions in China.

Honda reported that fiscal second quarter net profit contracted by 20% 494.68 billion yen, equivalent to $3.26 billion with operating profit dropping 15% to 257.9 billion yen.

For the fiscal year that will March 2025, Honda now expects an even bigger net profit drop, increasing its prior guidance of a 9.7% fall to a 14% drop. While it previously expected to sell 3.9 million units during the fiscal year, it now lowered its guidance ...

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