HONDA SURPRISED investors with a near tripling of its annual profit forecasts yesterday, bumping it further ahead of Japanese rivals thanks to a dominant motorcycle business and line-up heavy in small cars.
But Honda, the world’s seventh-biggest carmaker, attributed the bulk of the revision to state-backed measures to stimulate sales and warned a real recovery in demand was still some ways off.
While rivals Toyota and Nissan are also expected to report improved second- quarter earnings next week, Honda is seen making the most profit by far for the full year, helped by its more flexible operations and fewer exports from Japan, where the strong yen has raised costs.
