Motorcycle sales give Honda Motor 2nd quarter profit

Honda Motor Co. of Japan managed to show a profit of ¥22.5 billion (US$290 million) mostly due to strong sales of motorcycles. The automotive division suffered a loss of ¥76.2 billion (US$997.4 million). It now expects strong competition in the fuel-efficient vehicle segment. The company was greatly affected by the earthquake and tsunami, particularly with regards to supplies of automotive parts. The launch of the Fit Shuttle station wagon had to be delayed and orders for the redesigned Civic were halted. Honda has been able to normalize automotive production and projects. It will sell 3.4 million units worldwide in fiscal 2011. The company will also be increasing its production of vehicles in the fiscal second half of 2011. (August 2, 2011)