Honda profit misses es­ti­mates

The Pak Banker - - 6BUSINESS -

TOKYO: Honda Mo­tor Co., the big­gest cus­tomer for trou­bled air-bag sup­plier Takata Corp., re­ported profit that missed an­a­lyst es­ti­mates as costly re­calls to re­place the devices ex­pand. The au­tomaker posted net in­come of 124.2 bil­lion yen ($1 bil­lion) in the quar­ter through De­cem­ber, ac­cord­ing to a com­pany state­ment. That com­pares with the 149.3 bil­lion yen av­er­age of eight an­a­lysts' es­ti­mates com­piled by Bloomberg. The com­pany main­tained its fore­cast for profit to rise to 525 bil­lion yen for the fis­cal year end­ing in March. Honda call­ing back more than 20 mil­lion ve­hi­cles to fix Takata-made air bags has dis­tracted from the com­pany's busi­ness re­sults, with re­calls ex­pand­ing fur­ther this month. The car­maker is shoul­der­ing costs as in­ves­ti­ga­tors de­ter­mine the root cause be­hind a de­fect linked to 10 deaths in its ve­hi­cles. Takata's devices have rup­tured and in­jured about 100 more mo­torists in US alone, in­creas­ing Honda's qual­ity-re­lated ex­penses.

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