Honda's Profits Take a Nosedive! Tariffs and Terrible Decisions?

76% Profit Drop? What in the Actual F***?

Alright alright alright settle down chat. So Honda right? You know those guys who make those cars that are kinda... there? Well they just dropped a bomb. A 76% drop in operating profit for the fourth quarter! 76%! I've seen better numbers on a damn loot box. What happened? Did someone forget to pay the electric bill at the factory? Jesus Christ. I'm looking at these numbers and I'm thinking 'Did someone actually try?'

Uncle Sam's Got His Hand Out

Turns out tariffs are the big bad wolf here. The U.S. slapped a 25% tariff on foreign automobile imports and Honda's feeling the pinch. They even decided to move production of the next gen Civic hybrid to Indiana to dodge those pesky tariffs. Smart move? Maybe. But it's like putting a Band Aid on a severed limb isn't it? This is some real 'big government' kinda stuff I tell ya. First they come for your tendies then your car company profits. Where does it end?

Asian Automakers Still Dominating Though

Despite all the doom and gloom Asian automakers are still crushing it in the U.S. market. Honda's sitting pretty at number four. So they're not exactly dead in the water. More like... slightly inconvenienced by a rogue wave. But hey fourth place is still fourth place. You know what they say 'Fourth is the new participation trophy.' Or something like that. I don't know I make up quotes as I go man.

Future Looking Bleak? Or Just Realistic?

Hold on to your hats folks because Honda's projections for the next fiscal year are even worse! They're expecting a massive drop in operating profit and net profit. I mean damn. Are they just tanking on purpose at this point? It's like they're saying 'Yeah we know we're gonna suck so let's just get it over with.' You gotta respect the honesty I guess. But still yikes!

Dividends Though...

But wait there's a glimmer of hope! They're increasing the dividend per share. So if you own Honda stock at least you're getting a little something back while the ship sinks. It's like getting a free drink on the Titanic. Sure you're gonna drown but at least you'll be drunk while you do it. They went from payout ratio to "dividend on equity". I'm not a financial advisor but I think they are just trying to seem good.

Merger Talks Go POOF!

Remember that potential mega merger with Nissan? Yeah that's dead. Kaput. Gone. Finito. $60 billion down the drain. Imagine how many Funko Pops you could buy with that kind of money! It's like they were trying to make a Voltron of car companies but then someone realized that Voltron's kinda lame. 'Oh no no no no no no.' What a failure!