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Honda profit up despite hit from Takata air bag recalls

Honda reports better profit, sales despite hit from Takata air bag recalls, sticks to forecast

Honda profit up despite hit from Takata air bag recalls

TOKYO (AP) -- Honda reported a quarterly profit of 127.7 billion yen ($1 billion), up 7 percent from its revised result from the year before, even as costs of a massive recall related to defective air bags dented the boost from healthy sales.

Tokyo-based Honda Motor Co. kept its annual profit forecast unchanged Wednesday at 525 billion yen ($4.3 billion).

Honda, hard hit by air bag problems at supplier Takata Corp., said recall-related operating losses totaled 87.5 billion yen ($723 million) for the quarter.

Sales for the July-September fiscal second quarter rose nearly 16 percent to 3.6 trillion yen ($30 billion).

Takata agreed to pay $70 million in U.S. penalties for lapses in how it handled recalls of millions of explosion-prone air bags, blamed in eight deaths and more than 100 injuries worldwide.


Updated : 2021-09-23 05:12 GMT+08:00