Honda cuts profit forecast on rising recall costs
(MENAFN) Honda Motor cut its full-year profit forecast as it is dealing with soaring recall costs, including recalls from exploding airbag crisis linked to five deaths, The Peninsula Qatar reported.
The cut came after Honda said it was probing a fatal crash in the US that may have been caused by a defect in airbags manufactured by supplier Takata, which has sparked the recall of millions of units worldwide.
Japan's third-largest automaker said it was cutting its fiscal year to March net profit forecast by 3.5 percent to USD4.6 billion, citing quality-related expenses as well as weak demand in Japan and China.
In the fourth-quarter period of 2014, Honda's net income dropped 15 percent as rising costs hit its bottom-line, with the firm taking a USD425 million recall-related charge during the quarter.
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