Honda Motor Q1 operating profit up 11.5 percent, higher sales offset FX impact

Honda Motor Co. posted an 11.5 percent rise in operating profit in the first quarter as cost-reduction measures and higher vehicle and motorcycle sales offset the impact of a stronger yen.

By: | Published: August 2, 2016 12:25 PM
Honda maintained its previous forecast for net profit to rise 13.2 percent to 390 billion yen for the full year to March, as the company expects slightly higher vehicle sales and decreasing costs to recall potentially faulty air bags produced by Takata Corp. Honda maintained its previous forecast for net profit to rise 13.2 percent to 390 billion yen for the full year to March, as the company expects slightly higher vehicle sales and decreasing costs to recall potentially faulty air bags produced by Takata Corp.

Honda Motor Co. posted an 11.5 percent rise in operating profit in the first quarter as cost-reduction measures and higher vehicle and motorcycle sales offset the impact of a stronger yen.

Operating profit at Japan's third-largest automaker by sales came in at 266.8 billion yen ($2.61 billion) , surpassing an average estimate of around 183.31 billion yen from 10 analysts surveyed by Thomson Reuters I/B/E/S/.

Honda maintained its previous forecast for net profit to rise 13.2 percent to 390 billion yen for the full year to March, as the company expects slightly higher vehicle sales and decreasing costs to recall potentially faulty air bags produced by Takata Corp.

The automaker expects an average level for the Japanese currency of around 105 to the U.S. dollar and 120 to the euro this year, which it has said will shave around 303 billion yen from operating profit.

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