Honda Profits Jump 8% on Fuel-Efficient Lineup

The gas tank is half empty, as the company cuts global outlook
By Clay Dillow,  Newser Staff
Posted Jul 25, 2008 7:33 AM CDT
Honda Motor Co. Chief Executive Takeo Fukui shows Japanese automaker's new mini van "Freed" during its unveiling event in Tokyo. Honda's fuel efficient offerings are driving sales.   (AP Photo/Kyodo News)
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(Newser) – Honda announced an 8.1% gain in net profit yesterday for the quarter ending June 30, riding demand for its fuel-efficient models and beating analysts’ estimates, the Wall Street Journal reports. Honda has been hurt less by falling demand than rivals Toyota and Nissan because it's the least invested in truck and SUV lines. "Honda is better positioned than anyone else in the industry," one analyst tells the Journal.

While North American sales slipped slightly, global year-to-year sales rose 1.7%, and Japan’s No. 2 automaker increased sales in China and Brazil. Though Honda projected a grim 18.3% fall in net profit for the fiscal year, the analyst notes that the downbeat outlook could be offset by high demand for its vehicles. (Read more Honda stories.)