Skip Header
Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Honda guides to profit decline this year as sales stall

(Sharecast News) - Japanese carmaker Honda said that annual profits are expected to fall after a huge jump in the year just gone, with currency movements and rising costs estimated to weigh on the bottom line. The news came as the company unveiled a share buyback of up to 300bn yen (£1.5bn).

Honda said that pre-tax profit for the year to 31 March 2025 is expected to be JPY1.5trn (£7.7bn), with currency movements having a JPY201bn negative impact and R&D expenses being JPY121bn higher than last year.

However, the company is now targeting a 2.8% increase in operating profit to JPY1.42trn, up from earlier guidance of JPY1.25trn.

Sales revenues meanwhile are expected to fall 0.6% to JPY20.3trn (£104bn), with just a 0.3% increase in projected car sales to 4.12m units.

In the year to 31 March 2024, sales revenues jumped 20.8% to JPY20.4trn, helped by increased sales in the Automobile business as well as positive FX translation effects.

Pre-tax profit surged 87% to JPY1.64trn after its car business swung to a profit helped by a decent performance in the US.

Share this article

Related Sharecast Articles

FY turnover and profits grow at Arcontech
(Sharecast News) - Software firm Arcontech said on Monday that full-year pre-tax profits and turnover were both anticipated to come in ahead of current market expectations.
Brave Bison pre-tax profits grow in H1
(Sharecast News) - Digital advertising company Brave Bison said on Monday that adjusted pre-tax profits had grown in the six months ended 30 June, leaving it confident of its ability to meet current market expectations for FY24.
Fonix Mobile ends year ahead of market expectations
(Sharecast News) - Mobile payments and messaging technology provider Fonix Mobile reported a strong full-year financial performance in a trading update on Monday.
Tristel flags forecast-busting full-year results
(Sharecast News) - Infection prevention products manufacturer Tristel released a robust trading update for the year ended 30 June on Monday, with revenues and pre-tax profits surpassing market expectations.

Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

Award-winning online share dealing

Search, compare and select from thousands of shares.

Expert insights into investing your money

Our team of experts explore the world of share dealing.