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Honda doubles operating profit: report

business Updated: Apr 23, 2010 08:48 IST

AFP
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Japanese automaker Honda Motor doubled its operating profit in the year to March thanks to demand in emerging markets and the cheap yen, a report said on Friday.

Honda's year-on-year operating profit shot up roughly 90 per cent to 360 billion yen (3.9 billion dollars) for the previous financial year, the business daily Nikkei reported, without citing sources.

The figure exceeds previous expectations for a profit of 320 billion yen, it said.

The report comes as its rival Toyota struggles over a mass recall crisis that led to ratings agency Moody's on Thursday downgrading the beleaguered automaker.

Honda has a high operating efficiency and the brand's popularity in emerging markets has been boosted through strong sales of motorcycles, the report said.

The cheap yen against the dollar has pushed up profits by more than 10 billion yen, it added.

Company officials were not immediately available for a comment.

Honda said last month it would build a second motorcycle factory in India, employing about 2,000 people, to meet surging demand.

Japanese automakers and their rivals are competing for a slice of the fast-growing market in emerging nations such as India and China, where a burgeoning middle class is boosting spending on cars, motorcycles and other goods.