In announcing financial results on Friday, Honda also cut its sales and profit outlook for the current fiscal year ending March 31, 2022, citing the worse than expected microchip hit.
In the July-September quarter, the Japanese carmaker’s operating profit sank to 198.9 billion yen ($1.78 billion), from 282.9 billion yen ($2.53 billion) the previous year.
Parent company operating profit margin dropped to 5.8 percent, but it languished at only 2.1 percent for the core automotive business.
Honda said net income fell 31 percent to 166.6 billion yen ($1.49 billion) in the fiscal second quarter ended Sept. 30. Revenue slipped 6.8 percent to 3.40 trillion yen ($30.45 billion), as worldwide deliveries dropped 27 percent to 917,000 vehicles, from 1.25 million a year earlier.
Executive Vice President Seiji Kuraishi said Honda expects the global microchip crisis to begin easing early next year, but not in time for the company to recover fully by the end of the current fiscal year on March 31, 2022. “The impact was greater than previous forecast,” he said.