Honda shares slide as carmaker cuts annual forecast

<p>Shares in Honda have fallen as the carmaker slashes its annual forecast.</p>

Honda's shares have fallen in London today, as the carmaker slashes its annual forecast after sales in Europe and China slipped.

This is despite the automotive manufacturer announcing a jump in third-quarter profits as US sales recover.

Honda's profits rose to 77.4 billion yen (£538 million) in the last quarter of 2012, which is up from 47.6 billion yen in the previous year.

The company said profits have also been boosted by a continued recovery from the floods in Thailand in 2011, but nevertheless it slashed its full-year profit forecast to 370 billion yen compared to a previous projection of 375 billion yen.

This is because sales in Europe slipped by 87 per cent in the fourth quarter in 2012 compared to 2011, while demand in China has slumped as a result of the ongoing territorial dispute between the two nations.

At 10:50 GMT, shares in Honda fell by more than ten per cent to 3132.00p per unit.

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