Honda Posts Strong Profit as Weak Yen Fuels Motorcycle Sales

Honda Motor Co., the Tokyo-based manufacturer of the Accord sedan and Super Cub motorcycle, reported a significant increase in profit for its fiscal first quarter. The company's April-June profit totaled 456.9 billion yen ($2.9 billion), up from 196.6 billion yen for the same period a year ago.

The quarterly sales rose 13.5% to 6.06 trillion yen ($38 billion), driven by strong vehicle sales in the U.S. and India. Honda's motorcycle operations were highly lucrative, with sales going strong in Brazil and India.

Chief Financial Officer Masao Kawaguchi attributed the company's healthy first-quarter results to a favorable exchange rate, which boosted the value of its overseas earnings when translated into yen. The weak yen also helped Japanese exporters like Honda, as it raised the value of their foreign earnings.

Honda had previously recorded a significant loss for the fiscal year ended in March, acknowledging heavy costs for its electric-vehicle plans, which didn't meet original ambitions due to U.S. President Donald Trump's policies. The company has since abandoned many of its EV model plans and is focusing on producing vehicles that appeal to Chinese buyers, a market that requires different models than those sold in other regions.

Honda is expecting a return to profit for this fiscal year and raised its profit forecast to 400 billion yen ($2.5 billion) from an earlier 260 billion yen ($1.6 billion). The company's shares jumped 3.9% in Tokyo trading after the financial results were released.