Honda has a number of new models in its global product pipeline -such as the Jazz/Fit - which should boost fiscal 2020 full year sales

Honda has a number of new models in its global product pipeline -such as the Jazz/Fit - which should boost fiscal 2020 full year sales

Although it lowered its full year operating profit forecast due to currency movements, Honda Motor nonetheless beat analysts' projections for second fiscal quarter earnings per share and sales.

For the quarter ended 30 September, the automaker booked JPY3,729.1bn, down 2.9% year on year, as revenue from its automobile and motorcycle operations fell, not helped by unfavourable foreign currency movement. Share tipper seekingalpha.com said that beat analyst forecasts by JPY15.27bn.

Financial services boosted sales revenue.

Operating profit rose nonetheless, by 2.6% to JPY220.1bn, after Honda managed to lower its selling, general and administrative (SG&A) expenses which included "quality-related expenses" and "cost reduction efforts".

That profit was, however, reduced by changes to sales volume and model mix as motorcycle and automobile unit sales fell in India where Honda recently was reportedly considering closing a vehicle factory, or scaling it back to low volume KD kit assembly.

Profit before income taxes rose 2.3% to JPY289.6bn yen and after-tax profit was down 6.7% to JPY196.5bn yen due to an increase in income tax.

Q2 earnings per share were JPY111.70 beating the analysts by JPY12.61, according to seekingalpha.com.

The Japanese government hiked the general sales tax rate from 8% to 10% at the beginning of October and this was the main reason for a 25% slump in new vehicle sales that month. This is likely to have some impact on Honda's fiscal Q3 result.

First half sales revenue was JPY7,725.3bn (down 1.8%), operating profit JPY472.6bn (-8%), profit before tax JPY579.4bn (-9.7%) and after tax JPY368.8bn (-19%).

Earnings per share slipped to JPY209.63 from JPY257.44 a year ago.

Automobile unit sales inched up 0.4% to 2,652,000 in the first fiscal half.

Honda lowered its previously announced operating profit forecast JPY80bn to JPY690bn, citing adverse currency moves.

"Honda will continue to make steady progress in the improvement of profitability and strives to establish a business structure which generates profit equivalent to or more than that of the previous fiscal year," the automaker said in a statement.

The company also plans to acquire up to 33m of its own shares worth up to JPY100bn from 11 November, 2019 to fiscal year end on 31 March, 2020.