While U.S. automakers such as Chrysler and Ford continue to struggle with their financial sheets, Honda has posted record-breaking fiscal first quarter profits. Although the strong yen and rising material costs hurt Japan’s number two automaker, Honda’s growth in new markets offset any losses.
Honda recorded a $1.68 billion profit for the April to June quarter, up 8.1 percent from the previous year and outpacing predicted profits of $1.2 billion, according to Yahoo Finance.
Despite the sharp increase, Honda ’s sales actually fell 2.2 percent to $26.79 billion, largely due to the rising value of the yen. According to Honda, its sales would have increased 7 percent if the yen’s value had remained steady from last year.
Honda’s U.S. sales also helped bolster the record quarter as demand for its fuel-efficient lineup spiked as gas prices crossed the $4 mark.
Honda sold 962,000 vehicles worldwide in its first fiscal quarter – up 1.7 percent from last year – setting a new company record.
