TOKYO (Reuters) - Honda Motor Co Ltd (T:7267) cut its sales forecasts for this year citing competition in Japan and China as well as the impact of recalls on new model launches, but said a weak yen will help it stick to its operating profit estimate at 770 billion yen.
Japan's third-biggest automaker by revenue also on Tuesday said operating profit fell 4.1 percent to 164.4 billion yen ($1.52 billion) in July-September, missing the 184.1 billion yen mean estimate of 14 analysts polled by Thomson Reuters I/B/E/S.
The results came after U.S. consumers filed a lawsuit against Honda and other car makers as well as Takata Corp <7312.T> in relation to mass recalls of cars equipped with potentially defective Takata air bags that have been linked to four deaths.
Last week, Honda also apologized for the fifth domestic recall of its Fit hybrid subcompact, for which the CEO and a dozen executives took pay cuts. The automaker said it would consequently re-examine its process for developing cars.
"Our multiple recalls have caused a nuisance for our customers," said Honda Executive Vice President Tetsuo Iwamura after the results. "As a result of this recall, we have had to do a full inspection of all the new models (in the pipeline). This has caused a delay ... some by as much as six months."
The automaker now expects to sell 4.620 million vehicles globally this year, 4.3 percent fewer than previously estimated. It cut its forecasts for Japan and for the rest of Asia by 100,000 vehicles each, but left its North America estimate unchanged.
In revenue terms, Honda now expects 12.75 trillion yen for the year ending March instead of 12.80 trillion previously.
The automaker also cut its net profit forecast by 5.8 percent to 565 billion yen, after booking a 17.9 percent rise in the second quarter to 141.9 billion yen.
Shares of Honda closed 0.7 percent lower before the earnings release, compared with a 0.4 percent decline in Tokyo's benchmark Nikkei index (N225).
(Reporting by Chang-Ran Kim and Mari Saito; Editing by Christopher Cushing)