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Honda postpones output recovery forecast to next fiscal year

Chip shortage prompts cut in full-year profit forecast

Most of Honda's profits these days come from its auto financing business.   © Reuters

TOKYO -- Honda Motor is struggling with longer-than-expected chip shortages and says supply bottlenecks will only start to clear early next year, making it hard for the Japanese automaker to make up for recent lost output within this fiscal year through March 2022.

Honda on Friday cut its full-year net profit forecast to 555 billion yen ($4.8 billion), mainly due to supply disruptions. Previously it had expected a net profit of 670 billion yen.

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