FILE PHOTO: The Honda logo is displayed at the 89th Geneva International Motor Show in Geneva, Switzerland March 5, 2019. REUTERS/Pierre Albouy/File Photo
TOKYO (Reuters) – Honda Motor Co (7267.T) raised its forecast for full-year operating profit by 6% as a weaker yen increased the value of overseas sales.
The Japanese automaker raised its operating income forecast to 730 billion yen ($6.6 billion) for the year to March 31 from a previous estimate of 690 billion yen.
It adjusted its expectation for the yen to average 108 to the dollar for the 12-month period from a prior forecast of 107.
A weaker currency buoys profits because exports become less expensive and the value of overseas earnings increases.
Honda raised slightly its estimate for global group auto sales in the current fiscal year by 5,000 units to 4,980,000 vehicles.
The company posted operating income of 166.6 billion yen for the October-December period, compared with 170.1 billion yen a year ago and an average forecast of 149.5 billion yen from nine analysts surveyed, according to Refinitiv.
Reporting by Kevin Buckland; Editing by Tom Hogue and Muralikumar Anantharaman