Honda Cuts Outlook on Global Chip Shortage, Gloomy EV Demand (1)

Honda Motor Co. slashed its annual profit guidance as a shortage of critical semiconductors hurts production, with the Japanese carmaker also warning of a turbulent outlook for electric vehicles.

The carmaker sees ¥550 billion ($3.6 billion) in operating profit for the fiscal year ending March 2026, it said Friday. That’s down from a previous forecast of ¥700 billion and missed analyst expectations that Honda would lift the outlook to ¥869 billion.

The chip shortage and a slump in demand in Asia saw Honda reduce its global autos sales forecast to 3.34 million units from 3.62 million. The carmaker has previously ...