Honda reports record fiscal 1Q profit

By The Associated Press

TOKYO - Japan's Honda Motor Co. says it posted record profit for a fiscal first quarter as sales growth in new markets offset damage from a stronger yen and soaring material costs.

Honda said it earned US$1.7 billion in the April-June quarter, up 8.1 per cent from the same period the previous year. Sales for the quarter dipped 2.2 per cent to US$26.6 billion, largely because a rising yen eroded the value of the automaker's overseas earnings.

The Tokyo-based manufacturer of the Civic and Accord compacts said it still sold more vehicles worldwide than in any other fiscal first quarter.

The company says demand for Honda products is booming in Asia, Brazil and other new markets.