November 8, 2019 / 6:09 AM / 12 days ago

Honda cuts operating profit forecast on stronger yen

TOKYO, Nov 8 (Reuters) - Honda Motor Co on Friday cut its full-year profit outlook by about 10% on expectations of a stronger yen.

Japan’s No.3 automaker cut its forecast for operating income to 690 billion yen for the fiscal year ending March, from 770 billion yen previously.

Honda now forecasts the yen will average 107 versus the dollar over the period, from a previous assumption of 110 yen.

A stronger currency eats into profits because exports become more expensive and the value of overseas earnings decreases.

Honda joins compatriots Suzuki Motor Corp, Subaru Corp, Mazda Motor Corp and Mitsubishi Motors Corp in slashing profit projections in recent days.

Toyota Motor, the country’s largest automaker, however bucked the trend and retained its forecast on Thursday.

Nissan Motor is due to report results on Tuesday. (Reporting by Kevin Buckland; Editing by Himani Sarkar)

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