Breaking news

Honda Reports A Staggering 76% Decline in Q4 Operational Profits

In a surprising turn of events, the renowned Japanese automaker Honda has announced a 76% drop in its operational profits for the fourth quarter, falling short of market expectations as reported by CNBC. This comes as Honda braces for the full impact of the US-imposed tariffs on imported vehicles.

Essential Facts

  • Honda’s revenue for the fiscal fourth quarter ending March 31st was 5.36 trillion yen (approx. 47.26 billion USD), aligning with analyst predictions.
  • The operational profit plummeted to 5 billion yen, starkly missing the forecast of 275.52 billion yen.
  • Over the entire fiscal year ending in March, revenues achieved 21.69 trillion yen, surpassing LSEG’s average forecast of 21.63 trillion yen and marking a 6.2% year-over-year increase.
  • Nonetheless, the operational profit declined 12.2%, reaching 1.21 trillion yen against expected forecasts of 1.41 trillion yen.

What to Watch

Honda’s financial outcomes coincide with heightened trade tensions, as the US has imposed a hefty 25% tariff on imported automobiles. In response, Honda plans to manufacture the next generation of its hybrid Civic in Indiana instead of Mexico to circumvent potential tariffs on this popular model, reports Reuters.

On the US automotive stage, Asian manufacturers claim six of the top eight positions in sales volume, with Honda holding the fourth spot. Additionally, discussions about a massive merger between Honda and Nissan valued at 60 billion USD have been called off, stalling the creation of a potentially vast automotive force.

Cyprus Government Fortifies Economic Resilience Amid Global Uncertainty

Government Commitment to Stability and Growth

Cyprus continues to build a strong and resilient economic foundation to support business planning and investment, as emphasized by Deputy Minister to the President Irene Piki. Representing President Nikos Christodoulides at the 12th Keve Business Leader Awards, Piki underscored that in today’s volatile global landscape, a consistent and reliable economy remains the cornerstone for long‐term strategic planning and confidence-building among businesses.

Strengthening Competitive Edge and Attracting Investment

Piki lauded the role of the Cyprus Chamber of Commerce and Industry (Keve) for its dedication to promoting Cyprus as an attractive investment destination and for supporting the expansion of local businesses. Reflecting on President Christodoulides’s recent address at Keve’s annual general assembly, she outlined the government’s vision for a more competitive Cyprus, which includes expanding market access, improving financing channels, and implementing a streamlined, business-friendly regulatory framework—all pivotal as Cyprus prepares for its EU Council presidency.

Economic Indicators Reflecting Confidence

Despite global uncertainties, Piki highlighted that the Cypriot economy continues to demonstrate resilience: gross domestic product grew by 3.4% in 2024, and forecasts indicate nearly 4% growth in 2025. With inflation remaining among the lowest in the European Union and unemployment dropping below 5%, these indicators affirm steady economic progress. Furthermore, positive ratings from international credit agencies, which have placed Cyprus in the A category with upbeat outlooks, underscore the success of prudent economic policies.

Fiscal Discipline and Strategic Investments

The government’s upcoming 2026 budget, which reinforces fiscal stability with a surplus balance and targets a decline in public debt to 50.9% of GDP, opens the door for strategic policy interventions. Piki noted that investments in energy, digital infrastructure, technology, and green growth are key priorities. Enhanced by the nearing completion of Recovery and Resilience Plan projects, Cyprus is now setting the stage for the next seven-year EU funding framework, ensuring a robust platform for sustained growth with active collaboration from the business community.

Regulatory Reforms and Market Liberalization

Central to the government’s agenda is the imminent tax reform, expected to be finalized on December 22 and implemented on January 1, 2026. This reform is designed to bolster business liquidity and attract new investments. The establishment of the National Enterprise Development Organisation further complements these efforts by offering financing tools and advisory services for small and medium-sized enterprises. Complementing these initiatives, the Cyprus Equity Fund is actively investing in innovative companies, while the Ministry of Energy grant schemes are projected to mobilize €360 million by 2027 to boost competitiveness.

Accelerating Digital Transformation and Energy Reforms

In its pursuit of a modernized business environment, the government is set to introduce a Business Service Centre in central Nicosia in 2025, consolidating licensing procedures to significantly reduce bureaucratic delays. In tandem, the impending launch of a competitive electricity market in October 2025 will empower companies to select their energy suppliers, fostering market competition and fair pricing.

Nurturing Human Capital

Recognizing the importance of talent in driving economic progress, the government is intensifying efforts to attract skilled professionals back to Cyprus. The Minds in Cyprus initiative, a collaboration with Keve and Invest Cyprus, seeks to reverse the talent drain by engaging Cypriots abroad through a series of events scheduled in the United States, United Kingdom, and Greece during 2026.

Commitment to Sustainable Growth

Concluding her address, Deputy Minister Piki congratulated the award recipients for their innovation and resilience, asserting that their achievements are a testament to the dynamism of the Cypriot business community. The government remains steadfast in its commitment to implementing reforms that support a stable, competitive, and sustainable economic future for Cyprus.

The Future Forbes Realty Global Properties
eCredo
Uol
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter