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Last Updated: Wednesday, 31 January 2007, 10:13 GMT
US supply issues hit Honda profit
Honda car
Honda is enjoying strong sales growth around the world
Honda's latest profits have failed to meet stock market expectations because it cannot make its cars quick enough to meet soaring US demand.

The firm saw its net profit rise 9% to 145bn yen ($1.2bn; �615m) in the last three months of December, up from 133bn yen for the same period a year earlier.

This was less than the 154bn yen expected by analysts and investors.

Helped by a weaker yen, Honda's global revenues for the third quarter period rose 12% from the year before.

Its revenues increased to 2.77 trillion yen, marking Honda's seventh straight year of record third quarter sales.

Japan's second biggest

Although Honda's sales were flat in Japan during the three months, they surged 32.5% across Asia as a whole, gained 22% in Europe, and added 8.5% in the US.

Honda is now boosting it supply network in the US, where along with fellow Japanese carmaker Toyota, its cars are in high demand, as they are seen as more fuel efficient than American rivals.

Honda has now increased its full-year net profit forecast to 560bn yen from a previous 555bn yen.

It is the second-largest Japanese carmaker after Toyota, ahead of Nissan.


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