April 27, 2018 / 6:11 AM / 4 months ago

Honda sees 16 pct slide in annual profit on stronger yen

TOKYO, April 27 (Reuters) - Honda Motor Co on Friday forecast a 16 percent drop in operating profit for the current financial year as it expects to take a hit from a firmer yen, which will offset stronger global sales of cars and scooters.

Japan’s No. 3 automaker expects operating profit to fall to 700 billion yen ($6.41 billion) in the year to March 2019, well below a median forecast for 877 billion yen from 21 analysts polled by Thomson Reuters I/B/E/S.

Its profit was 833.5 billion yen in the year ended March.

Honda’s projection is based on expectations that the yen will trade at 105 yen to the U.S. dollar in the year to March, compared with 111 yen in the year just ended.

A firmer local currency can dent profits that are repatriated from overseas.

$1 = 109.2800 yen Reporting by Naomi Tajitsu; Editing by Himani Sarkar

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