Aug. 5, 2020, 2:57 a.m. EDT

Honda Motor swings to loss on 47% revenue fall

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By Kosaku Narioka

Honda Motor Co. on Wednesday posted a net loss in its first quarter, as the Covid-19 pandemic hurt sales in markets around the world.

The Japanese auto maker booked net loss of 80.87 billion yen ($764.9 million) for the quarter ended June, compared with net profit of Y172.30 billion a year earlier. The result was worse than the net loss estimate of Y64.22 billion from a FactSet poll of analysts.

First-quarter revenue declined 47% to Y2.124 trillion.

Honda said the pandemic likely cut its first-quarter pretax profit by Y440 billion. It said it expects the pandemic to reduce its fiscal-year pretax profit by Y665.0 billion. Honda said that governments' movement restrictions led to the suspension and reduction of production, and that the pandemic forced retail stores to close or shorten operating hours in some locations.

Honda's car business posted operating loss of Y195.89 billion, compared with Y120.38 billion profit a year earlier. Operating profit for its motorcycle business fell 84% to Y11.20 billion.

By geography, its North America and Japan businesses suffered operating losses.

For the full year ending March 2021, Honda said it expects revenue to decline 14% to Y12.800 trillion and net profit to drop 64% to Y165.00 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

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