Honda Motor Co.'s second-quarter net profit rose 46 percent after strong car sales in its biggest market, the United States.
The automaker said its July-September net profit totaled 120.4 billion yen ($1.23 billion), compared with 82.2 billion yen a year ago. For the financial year ending in March 2014, Honda stuck to its forecast of 580 billion yen in net profit.
Honda, the fifth-biggest carmaker in the United States, sold 413,434 vehicles in that market in July-September, up 13 percent from a year ago.
Sales were boosted by the Civic compact, the best-selling small car this year whose deliveries rose 9 percent and the Accord sedan, which increased 14 percent this year.
The automaker managed to keep incentives low even as sales expanded. The average incentive spending per vehicle fell 30 percent to $1,611 in the first nine months of this year, the lowest level among the six biggest car manufacturers in the U.S., according to market researcher Autodata.
Honda has been facing high costs of expansion to build new plants and lines as it aims to boost worldwide car sales to 6 million vehicles by end-March 2017, compared with a record 4.01 million in the year ended March 2013.
In July, Honda started to operate its new Yorii plant near Tokyo, where it is set in November to start manufacturing the redesigned Fit subcompact, which went on sale in Japan in September. Car sales in September in Japan jumped 40 percent from a year earlier to 74,779 vehicles.
Honda is one of the Japanese exporters benefiting from Prime Minister Shinzo Abe's economic policies, which have helped weaken the country's currency. A weaker yen increases the value of repatriated earnings and is giving Japanese carmakers an edge over rivals including General Motors Co.
The yen has fallen about 12 percent against the dollar in 2013, creating a tailwind for Japanese brands as they face the most competitive lineup of vehicles in a generation from U.S. automakers GM, Ford Motor Co. and Chrysler Group LLC.
Before Abe's election, the Japanese currency hobbled exporters for years, appreciating to a postwar high of 75.35 to the dollar in October 2011 from about 115 in a four-year period.
The yen began tumbling in late 2012 as polls showed Abe, who called for unprecedented monetary-easing policies that would weaken the currency, would lead his Liberal Democratic Party to a win in the nation's parliamentary elections.
Honda is the first of Japan's big three automakers to announce quarterly results. Nissan Motor Co. will report results on Nov. 1 and Toyota Motor Corp. on Nov. 6.
Reuters and Bloomberg contributed to this report