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The Transalp is a nimble bike with on- and off-road ability. Picture: DENIS DROPPA
The Transalp is a nimble bike with on- and off-road ability. Picture: DENIS DROPPA

Tokyo — Japan’s Honda Motor said on Thursday its third-quarter operating profit increased 5% from a year earlier, largely due to a strong performance of its motorcycle business and a weak yen, but missed analysts’ estimates.

Honda also said in a joint statement with smaller rival Nissan that the companies had agreed to end merger talks but would continue to co-operate in electric vehicles (EVs).

Honda, Japan’s second-biggest carmaker, saw quarterly operating profit come in at ¥397.3bn ($2.58bn), versus an average estimate of ¥403.7bn in a survey of seven analysts by LSEG.

Its automotive business benefited from stronger vehicle sales in the crucial US market while sales in China declined in the quarter, it said in presentation materials.

Honda is one of the Japanese car brands that has faced growing competition, including on price, in China after the rapid rise of Chinese EV makers.

The company retained its full-year operating profit forecast of ¥1.42-trillion, while revising its global sales outlook to 3.75-million vehicles from 3.8-million expected previously, mainly reflecting a decrease in Japan.

Reuters

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