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Make it six-consecutive record setting first quarters for Honda in terms of sales and net income. Year-over-year Honda increased its sales by 14.8% to 2.6 trillion yen ($22.6b), operating profit grew by 19.4% to 203.5 billion yen ($1.77b), and net income jumped 29.6% to 143.4 billion yen ($1.24b). Honda cited revenue growth in North and Latin America and said that had the yen-exchange rate remained the same as in the prior y-o-y period, then revenue would have only increased by an estimated 7.8%.

AP's Yuri Kageyama mentioned in a Yahoo! Finance article covering Honda's earnings that:

Honda kept its profit outlook for the full fiscal year ending March 2007 at 550 billion yen ($4.7 billion) but revised its sales forecast upward to 10.7 trillion yen ($91.6 billion) from the forecast in April for 10.6 trillion yen ($90.7 billion).

Honda's global sales increased by 6.7% in the quarter to 896,000 vehicles. Sales in the U.S. were up by almost 9% to 456,000, Asia ex-Japan up by 15% to 153,000, domestic Japan fell by 6.6% to 156,000, with total overseas sales growing by 10% to 740,000. By the way, Honda sold 71,000 vehicles in Europe during the quarter down slightly y-o-y.

Radio Nikkei reported that Honda didn't revise upward its profit forecast for the year because a continued weak yen results in higher raw materials costs, partially offsetting forex gains.

Honda also announced a share buyback today, allowing for up to 6-million shares (0.33% of shares outstanding) to be repurchased between August 2nd and October 13th for a maximum amount of 18 billion yen ($155m).

For more details of Honda's Q1 earnings visit its investor relations website by clicking here.

Honda's ordinary shares (Tokyo: 7267) gained 0.53% to close at 3,770 yen ($32.36) ahead of its after hours earnings release. Its ADRs closed yesterday up 2.28% at $32.25.

Honda Motor Co (NYSE:HMC) 1-year chart:

Source: Honda Reports Another Record Quarter, Raises FY Sales Forecast