Honda’s profit jumps

DATE: 03 Feb 2010
Honda’s profit jumps

The Japanese carmaker has announced its strongest quarterly operating profit in a year and a half

By Ian Armitage

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Honda reported that fiscal third-quarter profit rose sharply to 134.6 billion yen from 20.2 billion yen in the same period last year.

Aggressive cost cutting and improved Asian car sales helped it overcome a strong yen and slumping business in Europe and North America.

BETTER THAN MOST

Honda has weathered the industry’s turmoil better than most automakers thanks mainly to its motorcycle business, which cushioned the impact of the financial crisis.

Its car business has also improved in recent months off the back of government incentives such as the U.S. cash-for-clunkers programme or the UK’s car scrappage scheme.

The carmaker has lifted its annual outlook on the news and may also benefit from the global recall of millions of vehicles by larger rival Toyota.

Edited by Ellie Duncan

SOURCE: www.honda.com


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