Honda first-half profit, sales set record

Honda Motor Co. said Thursday both its group net profit and sales for the April-September first half of business 2007 hit record highs for the seventh straight year on a semiannual basis, driven by upbeat demand for its vehicles overseas.

Honda's midterm consolidated net profit rose 38.1 percent from a year earlier to ¥374.6 billion on sales of ¥5.9 trillion, up 12.8 percent, the company said.

The automaker's group operating profit increased 28.1 percent to ¥508.02 billion.

Honda's overseas automobile sales grew 10.4 percent from a year earlier to 1.604 million units on the popularity of CR-V sport utility vehicles and Accord and Civic cars.

Honda, Japan's second-biggest automaker, said the depreciation of the yen versus major foreign currencies in the first six months also had a positive impact on its earnings.

But the company said its domestic auto sales fell 14.7 percent to 279,000 units.

Motorcycle sales in the same period fell 11.7 percent to 4.586 million units.

In the year to next March 31, it is expecting to post a group net profit of ¥640 billion and an operating profit of ¥880 billion on sales of ¥12.3 trillion.

Honda plans to pay a dividend of ¥86 per share for the whole of business 2007, up from its initial estimate in April of ¥80, on the back of strong earnings figures.

For the first six months, it will pay a dividend of ¥42 per share.

Among Japan's top three automakers, Honda was the first to announce midterm earnings figures.