Japanese automaker Honda reports profit drop as sales slip

TOKYO (AP) — Honda has recorded a 6.7% decline in July-September profit as vehicle and motorcycle sales slipped and an unfavorable exchange rate hurt earnings at the Japanese automaker.

Honda Motor Co. reported Friday fiscal second quarter profit totaled 196.5 billion yen ($1.8 billion), down from 210.7 billion yen the previous year.

Quarterly sales declined 2.9% to 3.7 trillion yen ($34 billion) as auto sales declined in the U.S., Japan, the rest of Asia and Europe.

Honda, which makes the Odyssey minivan and Asimo robot, said higher income tax expenses also hurt results.

The Tokyo-based company lowered its full year profit forecast through March 2020, to 575 billion yen ($5.2 billion) from the 645 billion yen ($5.9 billion) given in August, and below the 610 billion yen earned the previous fiscal year.