Honda Motor Co., Japan's third-largest carmaker, said it may revise its full-year profit forecast when it announces first-half earnings in October, depending on how long the current market turmoil lasts.
A prolonged drop in U.S. equities will lead to a decline in consumption and delayed car purchases, Honda Chief Financial Officer Fumihiko Ike told reporters in Tokyo on Tuesday. The company is also concerned the yen may strengthen to the low 70s against the dollar, further hurting earnings from exports, Ike said.
U.S. stocks Monday sank the most since December 2008 and European stocks Tuesday retreated for an eighth day, the longest losing streak since 2003.