Japanese car manufacturer Honda Motor (HMC.NYSE, HNDA.LON, 7267.TYO, HDM.FRA) reduced its annual profit projections by one fifth because of falling China sales, the result of the East China Sea islands dispute rousing anti-Japanese sentiment, Reuters reported. The company said Monday it had reduced its annual China sales projection by 17% to 620,000 units. Honda cut its net profit forecast for the financial year by US$1.19 billion to US$4.7 billion. It also cut its projections for full-year revenue. Honda said that its two largest China factories will run on one shift, down from two, likely until mid-December. Honda’s Tokyo shares ended 4.7% lower at JPY2,399, their largest one-day fall since mid-September. Despite recent problems, the company does not intend to reduce investment in China.
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