Honda posts record 2017 net profit on US tax cut

Honda posts record 2017 net profit on US tax cut

A Honda Li Nian EV concept car is displayed during a media preview of the Auto China 2018 motor show in Beijing on Wednesday. (Reuters photo)
A Honda Li Nian EV concept car is displayed during a media preview of the Auto China 2018 motor show in Beijing on Wednesday. (Reuters photo)

TOKYO: Honda Motor Co said Friday its group net profit in the year ended March rose 71.8% from the previous year to a record 1.06 trillion yen, as it benefited from a major windfall from the US tax overhaul.

Honda, Japan's third-biggest carmaker by volume, posted a group operating profit of 833.56 billion yen in the year, down 0.9%, on sales of 15.36 trillion yen, up 9.7%.

In the current fiscal year ending next March, the automaker is projecting group net profit will decline 46.2% to 570 billion yen.

Operating profit is expected to fall 16% to 700 billion yen on sales of 15.60 trillion yen, up 1.6%, as it expects to take a hit from a firmer yen, which will offset stronger global sales of cars and scooters.

Honda's projection is based on expectations that the yen will trade at 105 yen to the US dollar in the year to March, compared with 111 yen in the year just ended.

A firmer local currency can dent profits that are repatriated from overseas.

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