Japan's Honda Motor Co <7267.T> cut its full-year net profit forecast by 20 percent after sales in China, the world's biggest autos market, were hit by a popular backlash against Japanese products last month in a dispute over East China Sea islands.
Honda cut its net profit forecast for the year to March 2013 to 375 billion yen from its earlier estimate of 470 billion yen.
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Net profit for July-September increased 36.1 percent to 82.2 billion yen, but was below the average estimate of 107.2 billion yen from six analysts polled by Thomson Reuters I/B/E/S. A year ago, Japanese manufacturers were still reeling from the March earthquake and tsunami.
Demand for Honda, Toyota Motor <7203.T> and Nissan Motor <7201.T> cars slumped in China amid violent protests over the territorial dispute, with South Korea's Hyundai Motor <005380.KS> and Germany's BMW picking up market share.
Sales by Honda and its China joint ventures dropped 40.5 percent in September. China is Honda's second-biggest market after the United States, accounting for 17 percent of its 2011 global sales.
Honda shares, valued at around $59 billion, fell 15 percent to near 9-month lows amid the China protests, but have since recovered, helped in part by a weaker yen.
(Reporting by Yoko Kubota; Editing by Ian Geoghegan)