Honda Motor Co. on Monday reported second-quarter profit that missed analysts’ estimates and withdrew its forecasts after flooding in Thailand crippled production in Southeast Asia.
Net income was ¥60.4 billion in the three months that ended Sept. 30, compared with ¥135.9 billion a year earlier, the company said. That missed the ¥66.1 billion average analyst estimate compiled by Bloomberg.
Honda, which made more than 170,000 cars in Thailand last year, scrapped its full-year forecasts as it reels from a disaster that has inundated 10,000 factories and flooded more than 80 percent of Thailand’s 77 provinces since July.
Automakers will produce 300,000 fewer vehicles than expected this year, according to the nation’s automobile industry group.
Honda shares have fallen 22 percent since August, the steepest drop among Japan’s three biggest carmakers. The stock fell 3.7 percent to ¥2,406 on Monday.
Second-quarter operating profit fell 68 percent to ¥52.5 billion, below the ¥78.5 billion average analyst estimate, with the company blaming the strong yen for eroding earnings.
Revenue also missed analyst estimates.
Toyota Motor Corp. said production was disrupted in Thailand, Indonesia, Vietnam, the Philippines, Japan and the U.S. this month after the floods interrupted supply of components.
Nissan Motor Co., which said its plants haven’t been flooded, has said it plans to keep its Thai factory closed until Friday because of a shortage of parts.
Toyota has said production of about 6,000 vehicles, including the Prius hybrid, could be affected due to reduced production at four of its domestic plants.
Honda stopped Thai production in October after a factory became flooded. Supply-chain disruptions led its factory in neighboring Malaysia to stop from last week and the company hasn’t determined when the facilities will reopen. The ripples have spread to Japan, where Honda pushed back the introduction of the Life Diva minicar because of delays in deliveries of aluminum wheels from Thailand.
Suparat Sirisuwannangkura, head of the Federation of Thai Industries’ automotive club, said Friday that automakers may need to wait until December before resuming production, resulting in only 1.5 million vehicles being produced in the country this year, or 17 percent fewer than the group had anticipated before the disaster.
For Honda and its domestic rivals, which rely on Thailand as a production hub for vehicles sold across Southeast Asia, the floods have resulted in their biggest supply-chain disruption since the March 11 earthquake and tsunami.
Kohei Takahashi of JPMorgan Chase & Co. estimates the Thai floods and supply-chain disruptions may cost Japan’s three-biggest carmakers more than ¥35 billion of operating profit.
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