Honda Shares Flat Despite Profits

Honda’s doubling of quarterly profit and robust outlook could not boost shares Monday, as the strong yen and a cut in its sales target weighed on investor interest.

Japan’s No.2 automaker expects over $6 billion in profit for the full year after a $2 billion quarterly figure, achieving record output in China and other Asian markets.

But a lower global sales forecast by 25,000 cars, as its U.S. market share slipped, combined with a yen just off record highs to spook share investors.

Honda’s motorcycle business has helped to cushion the blow, while analysts say it is less exposed to the yen because it builds only a quarter of its cars in Japan.

In contrast, Toyota makes about 44% of its vehicles in Japan, exporting about half that amount.

Still, Honda lowered its second-half dollar rate assumption to 80 yen from 85, while the Japanese currency was less than a yen from a record peak Monday.

Competition with Korean automakers has also been a factor, and Monday shares of world No. 5 Hyundai Motor hit a record high, after a $1.2 billion quarterly net profit.

Foto: NTDTV