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| Honda lowers profit forecast amid China - Japan dispute | Honda lowers profit forecast amid China - Japan dispute |
| (about 1 hour later) | |
| Honda has cut is annual profit forecast after anti-Japan protests in China hurt its sales in the country, its second-largest market. | Honda has cut is annual profit forecast after anti-Japan protests in China hurt its sales in the country, its second-largest market. |
| The protests, triggered by a row over disputed islands, saw Chinese consumers shun Japanese products. Honda's sales in China dipped by 40% in September. | The protests, triggered by a row over disputed islands, saw Chinese consumers shun Japanese products. Honda's sales in China dipped by 40% in September. |
| href="http://www.hondanews.info/news/en/corporate/c121029eng" >The carmaker has forecast a net profit of 375bn yen ($4.7bn; £2.9bn) for the financial year ending 31 March 2013. | |
| That is down from its earlier projection of 470bn yen. | That is down from its earlier projection of 470bn yen. |
| Honda said it expects income at its China unit to decline further in wake of the dispute between the two countries. | Honda said it expects income at its China unit to decline further in wake of the dispute between the two countries. |
| Analysts said other Japanese carmakers, which also saw their sales in China hurt by the protests, may make similar moves. | Analysts said other Japanese carmakers, which also saw their sales in China hurt by the protests, may make similar moves. |
| "It's likely Toyota and Nissan are going to cut forecasts in the same way," said Fujio Ando, managing director at Chibagin Asset Management. | "It's likely Toyota and Nissan are going to cut forecasts in the same way," said Fujio Ando, managing director at Chibagin Asset Management. |
| "A cut was to be expected because the problems with China weren't factored into forecasts." | "A cut was to be expected because the problems with China weren't factored into forecasts." |
| The protests in China followed Japan's purchase of islands known as Senkaku in Japan and Diaoyu in China, over which China claims sovereignty and which are also claimed by Taiwan. | The protests in China followed Japan's purchase of islands known as Senkaku in Japan and Diaoyu in China, over which China claims sovereignty and which are also claimed by Taiwan. |
| Recovery from disasters | |
| Meanwhile, the carmaker continues to recover from last year's natural disasters in Japan and Thailand. | |
| It reported a net profit 82.2bn yen in the three months to the end of September. | |
| That is a 36% jump from the same period last year. | |
| The firm said the recovery was driven primarily by increased car sales in the US and Japan, as well as the success of its new models. | |
| However, it warned that its performance n the coming months might be affected by a slowdown in sales in Europe. | |
| Several countries in the region have been hit by the debt crisis, which has led to a fall in consumer confidence and demand. |