Honda cuts forecasts 67 pct amid financial turmoil
TOKYO, Dec 17 (Reuters) - Honda Motor Co (7267.T) lowered on Wednesday its annual operating profit forecast by 67 percent, its third profit warning this year, as a deepening financial crisis hammers global car demand and sends the yen soaring.
Japan's second-biggest automaker now expects operating profit for the business year to March 31 at 180 billion yen ($2 billion), down 81 percent from last year. It had previously forecast 550 billion yen.
A poll of 18 brokerages surveyed by Reuters Estimates puts Honda's 2008/09 operating profit at 486 billion yen, although most estimates have not been updated in the last month.
Honda cut its net profit forecast to 185 billion yen from 485 billion yen.
Honda had been expected to weather the storm better than other global automakers thanks to its fuel-efficient fleet, but demand for cars has shrunk indiscriminately since the Lehman shock of September, piling up inventory despite production cuts.
Honda's profit warning could touch off similar moves at domestic rivals such as Toyota Motor Corp (7203.T) and Nissan Motor Co (7201.T), which are also reeling from the dollar's fall to 13-year lows against the yen. ($1=88.99 Yen) (Reporting by Chang-Ran Kim)
