Honda Doubles Profit Forecast, Boosted by China Rebound

Honda Motor Co on Friday more than doubled its fullyear operating profit forecast as it reported secondquarter earnings grew 28 amid a rebound in China after auto sales were squeezed by the impact of the coronavirus pandemic.

Japans thirdbiggest automaker said it now forecasts a fullyear operating profit of 420 billion yen 4.06 billion up from a previous prediction of a 200 billion yen profit.

That was well above an average estimate for a 254.6 billion yen profit compiled from 19 analysts polled by Refinitiv.

For the second quarter, operating profit came in at 283 billion yen, up from 220 billion yen in the same period a year earlier.

The upgrade came after a similar move by peer Toyota Motor Corp earlier on Friday. Honda and peers like Toyota are focusing more on China, the worlds biggest auto market, as it leads a rebound in global demand that was hurt by the coronavirus pandemic.

For the full business year, Honda said it expects to sell 4.6 million cars. Thats up from a previous forecast of 4.5 million, but still below the 4.79 million sold the previous year.

Like other automakers, Honda is also accelerating a shift to electric cars and other zeroemission vehicles, a change in strategy that was behind its decision last month to end its participation as an engine supplier in the FIA Formula One World Championship.

Honda last month launched its first massproduced allbattery car this month the Honda e and wants twothirds of its output to be newenergy vehicles by…

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