Honda Posts Record Net Profit as Weaker Yen Boosts Earnings
Honda Motor Co. reported its net profit for the April-June quarter more than doubled to a record high of 450.92 billion yen, or $2.86 billion, driven by robust demand in North America and a weaker yen.
The Japanese automaker's operating profit rose more than twofold to 530.77 billion yen during the first quarter, while sales increased 13.5 percent to 6.06 trillion yen.
Honda attributed the boost in operating profit to a 90.8 billion yen increase due to the weaker yen, with an assumed exchange rate against the U.S. dollar of 159 yen for the period, up from 145 yen a year earlier.
The company's vehicle sales fell to 786,000 units from 839,000 in the same quarter last year, primarily due to weaker sales in Asian markets. However, Honda noted strong demand for its hybrid and energy-efficient cars in North America on the back of soaring gasoline and crude oil prices.