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| Honda lowers profit forecast amid China-Japan dispute | Honda lowers profit forecast amid China-Japan dispute |
| (1 day 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. |
| The carmaker has forecast a net profit of 375bn yen ($4.7bn; £2.9bn) for the financial year ending 31 March 2013. | 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's shares fell 4.7% to 2,399 yen on the Tokyo Stock Exchange. The firm said it expected income at its China unit to decline further in wake of the dispute between the two countries. | |
| Japanese firms usually release their earnings after the close of markets, but Honda posted its latest report on its website three hours ahead of schedule by mistake. | Japanese firms usually release their earnings after the close of markets, but Honda posted its latest report on its website three hours ahead of schedule by mistake. |
| Earlier this month, Google made a similar mistake and released its third-quarter results early, leading to trading in its shares being suspended for two-and-a-half hours. | Earlier this month, Google made a similar mistake and released its third-quarter results early, leading to trading in its shares being suspended for two-and-a-half hours. |
| Further warnings? | Further warnings? |
| 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. |
| The protesters targeted Japanese brands and businesses associated with them. | The protesters targeted Japanese brands and businesses associated with them. |
| As a result, various Japanese firms including supermarket operator Aeon, Uniqlo owner Fast Retailing, carmaker Toyota and consumer electronics giant Sony suspended some of their operations in the country. | As a result, various Japanese firms including supermarket operator Aeon, Uniqlo owner Fast Retailing, carmaker Toyota and consumer electronics giant Sony suspended some of their operations in the country. |
| Analysts said other Japanese carmakers may also lower their profit estimates. | Analysts said other Japanese carmakers may also lower their profit estimates. |
| "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." |
| Disaster recovery | Disaster recovery |
| Meanwhile, the carmaker continues to recover from last year's natural disasters in Japan and Thailand. | 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. | 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. | 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. | 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 in the coming months might be affected by a slowdown of sales in Europe. | However, it warned that its performance in the coming months might be affected by a slowdown of 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. | Several countries in the region have been hit by the debt crisis, which has led to a fall in consumer confidence and demand. |