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| Honda sees 63% jump in profits as recovery continues | Honda sees 63% jump in profits as recovery continues |
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| Japan's Honda Motor has reported a 63% jump in profits, thanks in part to a recovery in sales in the US market. | Japan's Honda Motor has reported a 63% jump in profits, thanks in part to a recovery in sales in the US market. |
| The carmaker made a net profit of 77.4bn yen ($851m; £538m) in the final three months of 2012, up from 47.6bn yen in the same period a year earlier. | The carmaker made a net profit of 77.4bn yen ($851m; £538m) in the final three months of 2012, up from 47.6bn yen in the same period a year earlier. |
| The firm said its profits were also boosted by a continued recovery from the floods in Thailand in 2011. | The firm said its profits were also boosted by a continued recovery from the floods in Thailand in 2011. |
| The floods meant production at its factories in Thailand had to be stopped, which affected sales. | |
| However, the firm has recovered from that setback, as well as from the earthquake and tsunami that hit Japan in March 2011. | However, the firm has recovered from that setback, as well as from the earthquake and tsunami that hit Japan in March 2011. |
| Earlier this week, it reported record sales of 3.82 million vehicles for 2012, a jump of 19% from a year earlier. | Earlier this week, it reported record sales of 3.82 million vehicles for 2012, a jump of 19% from a year earlier. |
| Growth hurdles | |
| But the firm is also facing some growth hurdles, not least from the continuing sovereign debt crisis in the eurozone. | |
| The crisis has hurt region's growth and dented sentiment resulting in a drop in consumer demand in the region's countries. | |
| That has, in turn, affected demand for Japanese goods in the region. | |
| Honda's sales to Europe dipped 87% in the October to December quarter, from a year earlier. | |
| At the same time, the firm has also been hit by the territorial dispute between Japan and China. | |
| The spat, which flared up in September last year, resulted in protests in China which targeted Japanese brands. That has resulted in a drop in Honda's sales to China, the world's biggest car market. | |
| The carmaker said its sales to China dipped 68% in the three months to the end of December, from a year earlier. | |
| As it grapples with these issues in two key markets, Honda has lowered its profit forecast for the full year. | |
| Honda said it now expected net profit for the financial year ending 31 March 2013 to come in at 370bn yen, compared with its previous projection of 375bn yen. | |
| It is the second time in a space of four months that the firm has lowered its full-year profit forecast. In October, Honda had cut its projection to 375bn yen from its earlier forecast of 470bn yen. |