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Honda hikes full-year earnings forecast to $5.8bn on tight supply

Carmaker to raise prices in U.S. amid surge in prices of materials

Honda will temporarily scale down production at its domestic assembly plants due to stalled supplies of some components following flooding in Malaysia in December. (Photo by Masaru Shioyama)

TOKYO -- Honda Motor on Wednesday raised its full-year earnings forecast to 670 billion yen ($5.8 billion) from the 555 billion yen it had forecast in November, as the negative impact of the global chip shortage was offset by cost cuts, reduced dealer incentives and a weaker yen.

Honda now expects an operating profit of 800 billion yen for this fiscal year ending in March. It had previously forecast an operating profit of 660 billion yen. However, it made a slight downward revision on its revenue forecast to 14.55 trillion yen from 14.6 trillion yen.

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