Honda's profit drops on air bag recall woes despite strong sales in Asia, perks of weak yen

Markets Associated Press

Honda's profit for the fiscal fourth quarter dropped 43 percent as the costs of air bag recalls offset the positives of a weak yen and strong vehicle sales in Asia.

Continue Reading Below

Honda Motor Co. reported Tuesday a profit of 97.8 billion yen ($897 million) for January-March, down from 170.5 billion yen a year earlier.

The Japanese automaker has been the hardest hit by a recall of air bags manufactured by Takata Corp. of Japan, which supplied air bags for a wide range of Honda models.

In the defect, the air bag inflators can explode with too much force. At least six people have died worldwide due to the problem.

The weak yen helped to limit the fall in Honda's profit.