Honda has raised its forecast for operating profit this fiscal year on the back of a weakening yen and strong Q3 financial results.
The company forecast its operating profit to rise to 785 billion yen in the fiscal year ending March 31. The upward revision was above analyst estimates and follows some weakening of the yen versus the dollar since Donald Trump's US presidential election victory in November.
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Honda posted third-quarter (October 1-December 31) net income of 168.8 billion yen, beating analysts' estimates.
Operating profit for the fiscal nine months (April 1, 2016 through December 31, 2016) amounted to 702.6 billion yen, an increase of 23.9% compared to the same period of the previous year. The company cited cost reductions, an increase in profit related to changes in sales volume and model mix, and the positive effect of pension accounting. It also said the profit increase was in spite of the impact of the 2016 Kumamoto Earthquake and high yen over much of the period.
Net profit for the fiscal nine months amounted to 520.6 billion yen, an increase of 18.9% compared to the same period of the previous year.
