Honda Motor Co. exceeded market expectations and in fact, it has lifted its annual guidance after cost cuts pushed quarterly profit to the strongest in the past year and a half. Honda said it predicts further growth in the next fiscal year. Honda, Japan's No. 2 carmaker, has endured the financial crisis better than many of its competitors.
Honda's profitable and dominant motorcycle business cushioned the blow to global car demand from the financial crisis.
Also, due to the government incentives, Honda's lineup, which boasts fuel-efficient models such as the Civic and Jazz, has also turned up over the past three quarters.
A top Honda executive said that with car sales on track to reach 3.6 million vehicles next business year, Honda is expected to make an operating profit of about $1.1 billion per quarter.
In a news conference, Executive Vice President Koichi Kondo said that with these conditions, he sees "a fundamental ability to make 100 billion yen in operating profit every quarter."
Kondo added that this indicates a full-year operating profit of 400 billion yen ($4.39 billion) for the year to March 2011 -- up 25% from Honda's revised guidance of 320 billion yen for this year.