TOKYO - Honda Motor Co. reported last week financial results for the quarter ended June 30 were dragged down by a strong yen, which reduced the yen value of sales and profit earned overseas.
On the other hand, earnings for the period, which marked the first quarter of the fiscal year, were ahead of the company's conservative forecasts. Executives said profit for the fiscal first half should be about 20 percent higher than the company's earlier forecast of $1.5 billion.
Honda said its consolidated pretax profit in the quarter fell 15.9 percent from a year earlier to ¥101.8 billion, or $964.6 million at the exchange rate June 30. Net profit fell 12.4 percent to the equivalent of $604.8 million, while operating profit fell 16.5 percent to $989.3 million.
The declines came on a 2.2 percent increase in revenue, to $14.7 billion.
All the figures are consolidated, meaning they include results from most overseas subsidiaries.
Worldwide unit sales rose 10.6 percent to 636,000. In Japan, sales rose 13.2 percent to 180,000, led by the Odyssey minivan and the Vamos minicar. In North America, sales climbed 11 percent to 342,000 led by the new Odyssey and the CR-V sport-utility.
The strong yen, however, largely erased the benefit of the strong North American sales. The dollar weakened to an average ¥106.69 during the quarter from ¥121.01 a year earlier.
The yen's strength cascaded through Honda's results, cutting some $360.2 million from operating profit in the period. If the dollar-yen exchange rate had held steady at year-earlier levels, executives said, revenue would have risen by about 12.4 percent.