TOKYO, May 13 (Xinhua) -- Japan's Honda Motor Co. on Tuesday announced its earnings outlook for fiscal year 2025, projecting a sharp 70.1-percent decline in net profit to 250 billion yen (about 1.7 billion U.S. dollars) amid the negative impact of U.S. tariffs and currency fluctuations.

In its FY 2024 financial results, Honda reported a record high in group-wide revenue, which rose 6.2 percent year-on-year to 21.69 trillion yen.

However, operating profit declined 12.2 percent to 1.21 trillion yen due to increased costs related to boosting U.S. market sales, offsetting gains from strong motorcycle sales and product price increases.

Looking ahead, the company assumes the scenario that the U.S. tariff measures will remain in place for a full year, resulting in an estimated negative impact of 650 billion yen on operating profit.

Honda plans to mitigate about 200 billion yen of the projected loss through local production shifts and cost-cutting efforts, expecting a net reduction of 450 billion yen in profits.

Meanwhile, Honda announced a delay of approximately two years in the start of operations at its new electric vehicle (EV) plant in Canada, originally planned for 2028.

The planned factory was expected to have an annual production capacity of up to 240,000 units and be part of a broader supply chain collaboration with other companies for battery production and other components. ■