Because of the chip shortage crisis, Honda’s profits fell by 33%

Honda’s Japanese profits fell during the first quarter of the current fiscal year by 33% compared to last year, as a result of the chip shortage crisis, as there is currently a global shortage of computer chips, in addition to the high cost of raw materials and the closure associated with the pandemic in China, and other factors that It caused damage to the Japanese automaker Honda.

Chip crunch slashes Honda’s quarterly profit by 33%

The global chip shortage crisis has slashed Japan’s Honda ‘s profits in the first quarter of the current fiscal year by 33% compared to last year, as the global shortage of computer chips, the coronavirus-related shutdown in China, the high cost of raw materials, and other factors caused In severe damage to the Japanese car manufacturers .

Tokyo-based Honda Motor Co. said last Wednesday that its total quarterly profit during the first quarter of this fiscal year amounted to 149.2 billion yen, or $1.1 billion, during the first quarter (from April to June). \ June).

While the profits of the Japanese company Honda during the same time period last year amounted to 222.5 billion yen, equivalent to 1.7 billion dollars, and this means a decline in the profits of Japanese Honda by 7% to 3.8 trillion yen, equivalent to 28 billion dollars.

Despite the decline in profits of Japanese Honda, the Japanese automaker maintained its forecast for the full fiscal year until March 2023, unchanged from 710 billion yen, equivalent to 5.3 billion dollars.

The shortage of semiconductors has also caused a lot of problems for the car manufacturers in the world, including Honda , which resulted in huge losses despite the strong medicine process.

For its part, the Japanese company Honda sold the Accord sedan, Odyssey minivan and Civic Compact, approximately 815,000 cars during the last quarter, compared to 998,000 cars from the same time period last year. In contrast, the entire world witnessed a decline in car sales, including That is the USA, Japan and Europe.

In the same context, Honda CFO Kohei Takeuchi appealed to all individuals who are still waiting to receive their cars to understand the current situation the company is going through, stressing that the company is doing its best to deliver the vehicles one day before the scheduled delivery date.

Chief Financial Officer Kohei Takeuchi also noted that the shortage of semiconductors has reduced production of motorcycles, as well as production of cars, which has reinforced doubts about the future economic outlook.

Finally, Honda noted that the shutdown in Shanghai was one of the reasons for the shortage of computer chips, but the company declined to provide any details about this matter.