Honda Profits Slip But Sales Rise

Japanese carmaker Honda saw profits slip 4% in the third quarter, despite strong sales in Asia and the US. Net profits for the three months to 30 September hit 128 billion yen ($1.1bn; £600m), down from 134 billion yen a year earlier.

The fall was mainly due to the 50 billion yen Honda lost hedging against changes in the value of the yen.

Japan's third-biggest carmaker relies heavily on exports and its profits can be hit by big currency fluctuations.

Honda's operating profit for the quarter rose nearly 19%, thanks to a 9.5% rise in overseas sales and the falling value of the yen against the US dollar, which makes its exports more valuable.

The company's range of fuel-efficient cars is helping it to win customers in Europe and the US, which it relies on for most of its profits.



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S4cabriofox - 10/25/2006 6:17:45 PM

0 Boost

Go Honda!

A Japanese brand with character!

Oh, wait, most of them do... it's only Toyota that makes cars for people who don't like to drive.

aznstuart - 10/25/2006 8:26:35 PM

+2 Boost

Yay Honda!