TOKYO: Japanese automaker Honda said its 6-month net profit climbed almost 19 per cent, even it cut its earnings outlook for the full fiscal year.
The Civic and Accord maker posted US$2.67 billion net profit in the six months through September. However, Japan’s number three automaker cut its full-year to March net profit estimate to ¥565 billion from an earlier ¥600 billion forecast, citing a tougher business environment in key Asian markets, including China.
Honda credited rising revenue in the first half to “brisk sales of vehicles and motorcycles in addition to positive impacts from currency rates”.
“The operating profit rose 1.7 percent year on year after cost-cutting efforts despite higher expenses for sales, general management and research and development,” it added in a statement.
The Japanese auto industry has benefited from the big-spending policies of Prime Minister Shinzo Abe, with huge monetary easing measures from the premier’s hand-picked team at the Bank of Japan helping push down the yen since last year. A weaker yen boosts the competitiveness of Japanese exporters and inflates their repatriated overseas profits.
