Honda Lowers Profit Outlook for a Second Time Amid Chip Shortage

Honda Lowers Profit Outlook for a Second Time Amid Chip Shortage
Honda's logo on its Modulo model is pictured at its showroom at its headquarters in Tokyo, Japan, on Feb. 19, 2019. Kim Kyung-hoon/Reuters
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TOKYO—Honda Motor Co. cut its full-year profit forecast for a second time on Friday as a persistent global shortage of semiconductors forces it to cut vehicle production and rising steel and material prices eat into profit margins.

Like other automakers, Honda’s production plans have been hit by the chip shortage, with global output in September falling 30 percent from a year ago, even as demand in key markets, such as China, rebounds from a pandemic slump.