TOKYO (Thomson Financial) - Honda Motor Co, Japan's second-largest automaker, said Thursday its net profit increased 38.1 percent in the fiscal first half to September from a year earlier, lifted by firm sales overseas.
Honda Motor also said the effects of a weak yen and cost-cutting efforts offset the impact of higher materials costs and increased spending on research and development.
The car maker posted a first-half net profit of 374.60 billion yen, compared to 271.31 billion yen a year ago.
Operating profit rose 28.1 percent to 508.02 billion yen as revenue increased 12.8 percent to 5.902 trillion yen.
Honda has raised its net profit estimate for the year to March 2008, now forecasting a net profit of 640.0 billion yen and an operating profit of 880 billion yen on revenue of 12.30 trillion yen, assuming that the US dollar will average 116 yen and the euro 155 yen over the year.
In July, Honda forecast a net profit of 625.0 billion yen and an operating profit of 880 billion yen on revenue of 12.35 trillion yen, assuming that the dollar would average 117 yen and the euro 155 yen.
The car maker said it plans to pay a dividend of 86 yen per share for this fiscal year, up from 80 yen forecast previously and up from 67 yen paid for the last fiscal year.
Honda also intends to de-list in December from three regional bourses in Japan -- Nagoya, Fukuoka and Sapporo -- because of low trading volumes.
After these de-listings, Honda shares will remain available for trading on the Tokyo, Osaka, New York and London stock exchanges, the company said.
(1 US dollar = 114.05 yen)
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