Honda has 12 Year High Profit Despite Looming Tariffs

Honda Motor (7267.T) said the impact of U.S. steel and aluminum import tariffs on its bottom line had so far been limited, as it posted a surprise jump in quarterly profits to their highest in more than a decade on improving North American sales.

The automaker also forecast a less than previously expected drop in annual operating profit and, while it lowered its global vehicle sales view given floods in Mexico are expected to drag on output, the number is still expected to be a record high.

The promising results and earnings outlook from Japan’s No.3 automaker stands in stark contrast to the dull forecasts from several major automakers hurt by rising raw material costs. A possible hike in U.S. tariffs on imported cars is further muddying projections for the sector globally.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.