Honda’s sales, profit drop amid rising costs, chip shortages

By YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — Honda has reported its profit dropped 32% in the last quarter as rising material costs and a shortage of computer chips hurt the Japanese automaker. Honda’s profit for the three months through December totaled 192.9 billion yen, or $1.7 billion. Quarterly sales slipped 2%. Like the rest of the world’s automakers, Honda’s manufacturing also has been affected by delays due to measures to curb coronavirus outbreaks. Japan’s top automaker Toyota reported a similar drop in profit. Honda, which makes the Accord sedan, Gold Wing motorcycles and Asimo robot, expects the challenges to persist. Rising material costs are also a problem, but the company said cost-cutting efforts allowed it to raise its profit projection.