Honda reports dip in profits, coronavirus keeps factories closed

The Japanese automaker, Honda, on Friday reported quarterly profits of 116.4 billion yen, down from 168 billion yen reported for the same period in the previous year.

Accounting for the loss, the automaker cited weak vehicles sales for the period October – December.

However, the company noted strong demand for its motorcycles, but it wasn’t enough to drive sales which slipped 6 % for the quarter.

Despite the closure of three of its factories in Wuhan, China – the epicentre of the coronavirus outbreak-  Honda has raised its profit forecast; with the car maker now projecting to earn 595 billion yen ($5.4 billion) this fiscal year, up from an earlier projection of 575 billion yen ($5.2 billion).

Production at Honda’s factories in China have seized since the start of the Lunar New Year’s holidays, which began on Jan. 24.

The Tokyo-based automaker did not reveal details with regards to the restart of production activities at any of its factories in China.