TOKYO (Reuters) – Japan Honda Motor Co (NYSE:) forecast operating profit to rise 2.8% this fiscal year after it beat analysts’ estimates in the fourth quarter as strong sales growth in the United States offset a slowdown in China.
Japan’s second-largest automaker by volume forecast full-year operating profit to rise to 1.42 trillion yen ($9.13 billion), compared with an average profit estimate of 1.39 trillion yen, according to a survey of 22 analysts by LSEG.
Operating profit in the three months to March 31 rose more than six times from a year earlier to 305.6 billion yen, well above the 248.3 billion yen average expected by nine analysts.
The automaker reported sales in its largest overseas market, the United States, rose 17% to about 378,000 vehicles in the period. However, its sales in China fell by more than 6% in January-March to about 207,000 vehicles.
In China, the world’s largest auto market, Honda is among a number of Japanese car brands that have battled nimbler and faster local rivals that have lured Chinese drivers with low-cost, high-tech electric vehicles.
Honda, which remains a latecomer to the EV market, said last month it plans to build an EV manufacturing base in Ontario, Canada, and launch six Ye-branded EV models in China by 2027.
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