Honda’s operating profit falls 56 percent

Tokyo, Oct 27 (DPA) The strong yen contributed to a significant fall in Honda Motor Co’s operating profit in the second quarter.
Its operating profit for the period July to September fell to 65.5 billion yen ($712 million) from 148.8 billion yen in the same period last year, a fall of 56 percent, the company said Tuesday.

In addition to the unfavourable exchange rate, lower sales and higher fixed costs as a result of production cuts contributed to the figures.

Sales fell 27.2 percent to 2.05 trillion yen.

Thanks to high demand for fuel-efficient models the company raised its forecast for the whole business year which runs until March 31, 2010.

Honda increased its net forecast to 155 billion yen from the previous figure of 55 billion yen.

The company also raised its sales forecast from 3.3 million cars to 3.4 million