Honda forecasts 7% fall in annual earnings, warns of rising costs

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Echoing comments from rivals Toyota and Nissan, Honda on Friday warned that the long chip crunch and rising raw material costs were hurting profit

on Friday forecast a 7 per cent fall in annual earnings, instead of an expected rise, and warned that the long chip crunch and rising raw material costs were hurting profit, echoing comments from rivals Toyota and Nissan.

Mizuno said the company was hearing the lockdown situation in Shanghai was getting better and supply chain and logistics in the country were recovering up to about 80 per cent. The company said it expects about 300 billion yen in costs to cover rising material, labour, and logistics expenses this year, a roughly 11 per cent jump from last year.

 

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