Japanese automaker Honda reported Friday a 20 percent jump in fiscal first-quarter profit on the back of a cheap yen that offset the damage from a large air-bag recall.
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155.6 billion yen ($1.3 billion) the same period the previous year.
Quarterly gross sales gained nearly 16 % to three.
The Tokyo-based maker of the Accord sedan and Odyssey minivan has been the toughest hit amongst automakers from the prices associated to a worldwide recall of Takata Corp.’s air luggage that may explode.
At the very least eight individuals have been killed and 100 have been injured by Takata air luggage, which may explode with an excessive amount of pressure and spew shrapnel into the auto.
Honda is still soaking up hefty quality-related costs as it continues to recall cars equipped with air bag parts made by top supplier Takata.
Honda recalled a further 4.5 million vehicles earlier this month over faulty airbags.
($484 million) for the fiscal year through March 2016.
Despite this, sales in North America advanced 11 percent in the first quarter, driven by increased production of its HR-V SUV model at its new plant in Mexico, according to Yahoo! The CR-V crossover additionally did nicely within the area.
The automaker is reaping the benefits of the weak Japanese yen, which makes it less expensive for the company to operate in the U.S. and some other markets.
Motorcycle sales revenue rose 10.8% to $3.9 billion. 7 million automobiles all over the world for the fiscal yr, up from nearly four.four million automobiles for the earlier fiscal yr, which ended March 2015.
Honda its financial forecasts unchanged for the year ending March 2016, calling for a modest 3.1 per cent rise in net profit to ¥525 billion.
“[Our profit gains] progressed at a faster pace than we had expected in the first quarter due to currencies and other factors, but we are not revising the full-year outlook as there are uncertainties such as future foreign exchange moves and costs related to quality issues”, said Executive Vice President Tetsuo Iwamura.
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$571 million in the second quarter, from $5.67 billion in the same quarter a year ago. At the end of Honda’s most recent quarter (June 30), one U.S. dollar bought about 123 yen.
