(Il Sole 24 Ore Radiocor) - Milano, 12 mar - Japanese automaker Honda said that it now expects to post an operating loss of 270-570 billion yen compared to its previous guidance for a 550 billion profit as a result of the reassessment of its electrification strategy.

It now expects a net loss of 105.07-172.62 billion yen compared to the 75.05 billion yen profit it previously expected.

As part of its reassessment, Honda decided to cancel the development and market launch of three electric vehicle models that had been planned for production in North America, namely the Honda 0 SUV, Honda 0 Saloon, and Acura RSX.

Honda said that the profitability of its automobile business is currently declining due primarily to the unfavorable impact of changes in US tariff policies on the gasoline and hybrid vehicle business and a decline in the competitiveness of Honda products in Asia due to the impact of the allocation of more resources to EV development.

Amid the intensification of competition in China, Honda said it reassessed the recoverability of investments accounted for using the equity method in China, and now expects to incur an impairment loss on the investments accounted for using the equity method.

In the current fiscal year, Honda expects to book operating expenses of 0.820-1.12 trillion yen and a share of the loss of investments accounted for using the equity method of 110-150 billion yen. Moreover, Honda expects to record special losses of 340-570 billion yen in the non-consolidated financial results for the same fiscal year.

Furthermore, in the next fiscal year or later, additional expenses or losses may be incurred in connection with the reassessment of the automobile electrification strategy.

Combined with the losses to be recorded in the current fiscal year, the total amount of losses is expected to be a maximum of 2.5 trillion yen.

Despite this revision to the consolidated financial results for the fiscal year ending March 31, 2026, Honda made no revision to the forecast for the dividend per share for this.

fiscal year.

(RADIOCOR) 12-03-26 11:56:18 (0325) 5 NNNN