Honda Motor Co. saw a nearly 63% surge in earnings for the October – December quarter, but the maker also issued a warning that earnings could take a tumble in the months ahead because of problems in China, now the world’s largest automotive market.
The Tokyo-based maker earned 77.4 billion yen, or $850 billion during its fiscal third quarter. That was, however, well off the 104.95 billion yen forecast of 11 analysts surveyed by the Nikkei Quick index.
Quarterly sales rose about 25%, to 2.4 trillion yen, or $26 billion. That increase reflected the maker’s recovery from the production shortages caused the prior year by Japan’s massive earthquake and tsunami. Demand was particularly strong in the North American market. But it also fell short in China as a result of that country’s ongoing dispute with Japan over the ownership of a chain of small, uninhabited islands in the East China Sea.