TOKYO - Honda Motor Co. raised its full-year earnings forecast after it posted record sales for its fiscal first quarter ended June 30.
Meanwhile, Nissan Motor Co. posted a good, though not outstanding, first quarter and left intact its forecast for the fiscal year ending March 31, 2006.
Nissan foresees modest gains of 1 percent or less for both operating and net profit this fiscal year.
Honda's revised forecast foresees operating profit this year up 5.4 percent but net down 3.3 percent.
Both forecasts are increased.
At both companies, strong sales in Japan and the United States pushed revenues and operating profits higher in the April-June quarter. But accounting changes and one-time charges hurt both companies' net profits.
At Honda, revenues and automotive unit sales rose to records for the quarter.
But higher incentive spending in North America, plus added development costs related to coming launches of redesigned vehicles, hurt earnings.
The two factors offset the impact of higher volumes.
In addition, Honda's nonoperating financial results were down from last year because of weaker performance in nonautomotive functions.
In North America, revenues rose along with unit sales, but incentive spending trimmed operating revenues.
Nissan cited an accounting change and the introduction of a defined-contribution pension plan for its drop in net earnings.