Honda posts first annual loss in nearly 70 years

Honda Motor posted its first annual loss in nearly seven decades as a publicly listed company on Thursday, weighed down by U.S. tariffs and more than $9 billion in restructuring costs tied to its electric-vehicle operations, News.Az reports, citing Reuters.

The automaker recorded an operating loss of 414.3 billion yen ($2.63 billion) for the financial year ending in March.

The result was worse than analysts’ expectations, as a poll of 22 analysts conducted by LSEG had projected a loss of 315.6 billion yen. A year earlier, Honda had posted a profit of 1.2 trillion yen.

Japan’s second-largest car manufacturer said total EV-related losses for the fiscal year reached 1.45 trillion yen. The company also warned that it expects to incur an additional 500 billion yen in EV-related costs during the current business year.

Despite the setback, Honda said it expects to return to profitability this year. The company forecast a profit of 500 billion yen, supported by planned cost-cutting measures and strong performance from its profitable motorcycle division.

News.Az 

By Nijat Babayev