Honda cuts US sales projection by 75,000 vehicles due to Celaya flood
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Honda Motor Company announced it has cut its North America sales projection by 75,000 vehicles due to flood and the consequent production halt at the company's assembly plant in Celaya, Guanajuato.
The Japanese automaker on Thursday lowered its revenue forecast for the fiscal year to 15.45 trillion yen (US $ 139 billion) from 15.6 trillion yen. However, Honda managed to raise its full-year earnings projection slightly, helped by a lower yen.
The company's forecast now estimates an exchange rate of 107 yen to the dollar, compared to a 105-yen rate previously. As result, Honda said it expects to post an operating profit of 710 billion yen (US $ 6.4 billion) in the year to March 2019, after previous guidance was 700 billion yen.
North American sales are now expected to reach 1.94 million units from 2,015 million units predicted three months earlier.
For the fiscal first quarter ending June 30, Honda posted a gain of 11% in operating profit to 299.3 billion yen (US $ 2.7 billion), beating analyst estimates.
Regarding the potential tariffs to auto imports in the U.S., Honda said it’s well positioned to face them since nearly 75% of the vehicles it sells in the country are built there.