By JOHN MURPHY

Jan 31, The Wall Street Journal


TOKYO -- Amid slowing U.S. auto demand, Honda Motor Co. said fiscal-third-quarter profit rose 38%, helped by sales of its fuel-efficient cars in China, Europe and North America.

Honda, Japan's No. 2 auto maker by sales volume after Toyota Motor Corp,. raised its full-year profit forecast, pushing aside fears of a recession in the U.S., where it sells about 40% of its vehicles.

The company is benefiting from U.S. demand for fuel-efficient cars such as its new Accord sedan and popular Civic, as drivers turn away from SUVs because of high gas prices. Strong sales in emerging markets and cost-cutting also helped lift the car maker's quarterly profit.

Net income in the quarter ended in December rose to 200 billion yen ($1.87 billion) from the same period a year earlier, Honda said. Group sales rose 10% to 3.04 trillion yen.

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