Honda Forecasts 63% Profit Drop on Parts Shortages, Strong Yen

Honda Motor Co., Japan’s third-largest carmaker, forecast a bigger-than-estimated 63 percent decline in full-year profit, citing production disruptions on parts shortages and the strong yen.

Net income may fall to 195 billion yen ($2.4 billion) in the 12 months ending March 31 from 534.1 billion yen a year earlier, the Tokyo-based company said in a statement today. That compares with the 375 billion yen average of 10 analyst estimates compiled by Bloomberg in the past 28 days.