Honda reports more than 60% drop in third-quarter operating profit

TOKYO, Feb 10 (Reuters) – Honda Motor said on Tuesday its third-quarter operating profit fell 61.4%, marking a fourth consecutive year-on-year decline, as U.S. import tariffs and worsening electric-vehicle market conditions weighed on results. Japan's second-biggest automaker after Toyota Motor reported operating profit of 153.4 billion yen ($987.07 million) for the period, missing the 174.5 billion yen average forecast from nine analysts polled by LSEG. Honda said its automobile business slipped into an operating loss over the nine-month period to the end of December after booking one-off costs related to its EV business, including asset write‑downs and lineup reviews, alongside the tariff impact. Executive Vice President Noriya Kaihara said Honda needed to boost its competitiveness of its business through a fundamental restructuring of its strategy, as it faces intensifying global competition, including from the rise of new car manufacturers. By contrast, Honda said its motorcycle business continued to perform strongly, with global sales led by India and Brazil, helping offset weakness in its automobile operations. The company maintained its operating profit forecast for the year ending March 2026 at 550 billion yen. ($1 = 155.4100 yen) (Reporting by Daniel Leussink; Editing by Christopher Cushing)

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