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Weak yen moves Honda up a gear

Honda sales - Overseas demand strong
Honda sales - Overseas demand strong

Japan's second largest car maker Honda has said its net profits rose by 15.8% in the three months to June from the same period a year earlier.

The company said strong demand overseas offset  a slump in domestic vehicle sales.

Honda, whose overseas earnings benefited substantially from a  weaker yen, also said it no longer expected a fall in profits for the full year.

Net profit came to $1.38 billion in the three months to June, its first financial quarter, while revenue rose 12.7%.

Honda sold 946,000 vehicles in the quarter, up 5.6% from a year earlier. Sales in Japan fell 12.8% to 136,000  while overseas sales were up 9.5% to 810,000.

Honda hiked its full-year forecasts following the strong start  to the year, predicting a 5.5% rise in net profit, having previously estimated that profit would drop 2.9%.