Honda makes hefty profit during this fiscal

Japanese vehicle giant Honda’s net profit jumped 20% in the first quarter on strong sales in its biggest market, North America, and cost-cutting moves.

Honda Motor Co’s April-June net profit stood at ¥186 billion ($1.5 billion), up from ¥155.6 billion in the same period the previous year.

Quarterly gross sales gained nearly 16 % to three.

Sales revenue increased 15.5 percent to 3.70 trillion yen from 3.21 trillion yen last year, due primarily to increased revenue in automobile and financial services business operations, as well as favorable foreign currency translation effects.

Honda, which has a stake in Takata, relies heavily on the Tokyo-based air bag and seatbelt maker.

Takata had recalled around 34 million air bag inflators in the US while globally, the recalls numbered 57 million, though some of the vehicles were being recalled a few times.

In June, Honda revised down its annual earnings for the previous fiscal year, blaming the expanding recalls of faulty airbags made by embattled supplier Takata (Frankfurt: 7TK.F – news), which have been linked to eight deaths and scores of injuries.

Earlier this month, Honda, the hardest hit global automaker, said it was recalling another 4.5 million vehicles as the scare over a deadly defect in Takata-made airbags widened.

It didn’t break down prices for the standard woes, however stated that was a part of the general gross sales and administrative bills estimated at 60 billion yen ($484 million) for the fiscal yr by means of March 2016.

Honda’s sales in North America and Asia rose from a year ago but the sales fell last year due to less demand by consumers. The CR-V crossover also did well in the region.

The cheap yen, which lifts the overseas earnings of Japanese exporters, also helped. The greenback has been buying and selling at 120 yen ranges, up sharply from about 102 yen a yr in the past.

Japanese automaker Honda today reported a 20-per cent rise in fiscal first quarter profit thanks to a cheap yen that offset the damage caused by a massive air bag recall.

Exxon earned $1 per share, down from $2.05 last year and less than the $1.11 per share expected by analysts surveyed by Zacks Investment Research.