Honda Increases Earnings Outlook On U.S. Car Market (HMC)

According to this Bloomberg article, Honda Motor HMC raised its earnings outlook by 6%, thanks in large part to a stronger U.S. car market, and Asian sales of motorcycles. The Japanese auto maker was able to do this, in spite of a stronger yen, which affects earnings when sales outside of the Japan are repatriated back to Japan. The company said it expects to earn $6.5 billion or 530 billion yen in the year ending March 31. The company had earlier expected earnings of 500 billion yen. “In North America, Honda is selling more profitable cars, and so the overall results look good,” said Mamoru Kato, an analyst at Tokai Tokyo Research Center. “There's been a gap in results between Honda and Toyota since the second quarter, and that seems to be getting bigger.” Honda said that vehicle sales in America could rise as much as 10% in the 2011 fiscal year, according to Executive Vice President Koichi Kondo. Speaking at a press conference today in Tokyo. Kondo said that its more profitable models are helping earnings, with the increased sales of light trucks such as the Odyssey minivan. “Demand is dramatically shifting to sport-utility vehicles since September, even though gas prices are creeping up,” Kondo said. At last check, shares of HMC were up 69 cents to $42.92, a gain of 1.6%.