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Honda projects profit drop on stronger yen

Saturday 26th April, 04:10 AM JST

TOKYO —

Honda Motor Co said Friday it expects its group operating profit in the year ending next March to drop 31.8% from the previous year to 650 billion yen due chiefly to the yen’s appreciation. Net profit is projected to fall 18.3% to 490 billion yen, while sales are seen increasing 1.1% to 12.14 trillion yen, said the major Japanese automaker.

The yen’s strengthening is likely to push down profits by 303 billion yen, based on the assumption the dollar will average 100 yen in the year, down sharply from 114 yen for the year that ended in March, Honda said.

Honda plans to sell 4.14 million automobiles globally, up 5.5% from the previous year, and 10.62 million motorcycles, up 13.9%. Auto sales in the key North American market are projected to decline 4.3% to 1.77 million units amid a U.S. economic slowdown.

JCN

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