Honda profits surged during the July-to-September quarter, but the third-largest Japanese automaker nonetheless lowered its full-year forecast reflecting a variety of potential problems ahead.
Helped by a weak yen, Honda Motor Co. reported net earnings of 141.8 billion yen, or $1.3 billion, for the second quarter of the Japanese fiscal year. Sales, meanwhile, increased by 4%, to 3.015 trillion yen, or $27.9 billion.
Honda is among the Japanese makers to benefit from a weak yen which it credited for boosting revenues by 123 billion yen, or $1.1 billion during the latest quarter. But that exchange rate enhancement isn’t expected to continue, industry analysts warn, while Honda warned it faces a “difficult business environment” that includes sluggish demand in Asia.