Listen to this article
After Nintendo and Panasonic, Honda has now boosted its annual guidance thanks to a Donald Trump-induced slide in the yen.
For the full year through March 2017, Japan’s third-largest carmaker said it anticipates a net profit of ¥545bn ($4.8bn) compared to an earlier forecast of ¥415bn after it revised its outlook for the yen downward. The revised target came in line with analyst forecasts for a profit of ¥540bn.
The upward revision came after the US dollar rose some 15 per cent against the Japanese currency during the fiscal third quarter as Mr Trump’s win in the US presidential election boosted hopes for stimulus measures and tax cuts.
Honda said its net profit for the October to December quarter also rose 36 per cent from a year earlier to ¥168.8bn, while revenue fell 3.2 per cent to ¥3.5tn.
In addition to robust sales in the US and China, Honda also benefited from a decline in costs related to the global recall of vehicles fitted with faulty airbags made by Takata.
Still, few carmakers in Japan are optimistic about the longer term future after the US president has attacked Toyota for its plan to build a new plant in Mexico and criticised Japan for failing to purchase American cars.