30 Oct 2012

Profit forecast cut by Honda

7:50 am on 30 October 2012

Honda has cut its annual profit forecast after anti-Japan protests in China hurt its sales there. China is its second-largest market.

Honda's sales in China dipped by 40% in September.

The car company has forecast a net profit of 375 billion yen ($US4.7 billion) for the financial year ending 31 March, 2013. That is down from its earlier projection of 470 billion yen.

Honda's shares fell 4.7% to 2399 yen on the the Tokyo Stock Exchange.

The protests in China followed Japan's purchase of islands known as Senkaku in Japan and Diaoyu in China, over which China claims sovereignty and which are also claimed by Taiwan.

Protesters targeted Japanese brands and businesses associated with them.