Honda records 20 pct rise in profit on cheap yen despite costs of massive air bag recalls

Markets Associated Press

Japanese automaker Honda is seeing a 20 percent jump in fiscal first quarter profit on the back of a cheap yen that offset the damage from a massive air bag recall.

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Honda Motor Co. reported Friday April-June net profit of 186 billion yen ($1.5 billion), up from 155.6 billion yen the same period the previous year.

Quarterly sales gained nearly 16 percent to 3.7 trillion yen ($29.9 billion).

The Tokyo-based maker of the Accord sedan and Odyssey minivan has been the hardest hit among automakers from the costs related to a global recall of Takata Corp.'s air bags that can explode.

Results got a boost from healthy sales, especially in North America. The cheap yen, which lifts the overseas earnings of Japanese exporters, also helped. Honda left forecasts unchanged.