Honda profit soars more than fivefold on year on cost cuts that offset lower sales

Honda profit soars fivefold from previous year

TOKYO — Honda says its profit for the October-December quarter soared fivefold from the previous year to 134.6 billion yen ($1.49 billion) as it slashed research expenses and other costs to offset declining sales.

The results released Wednesday marked Tokyo-based Honda Motor Co.’s first profit increase in two years, underlining a gradual recovery in the global auto market.

The Japanese automaker reported an 11.5 percent drop in sales for the quarter ended Dec. 31 at 2.24 trillion yen ($24.8 billion), partly because of the strong yen.

Honda has weathered the auto slump better than some of its bigger rivals because of its strength in emerging markets and its solid motorcycle division.