Honda’s quarterly profit sinks 6 percent amid quake damage

FILE - In this March 10, 2016 file photo, Honda Motor Co. President and Chief Executive Takahiro Hachigo speaks during a press conference at the automaker's headquarters in Tokyo. Honda is reporting a better-than-expected 174.6 billion yen profit ($1.7 billion) for the fiscal first quarter as it gradually recovers from plant damage caused by a quake in southwestern Japan. Analysts surveyed by FactSet had forecast at 133 billion yen ($1.3 billion) quarterly profit. The April-June 2016 profit fell 6 percent from a year ago, when the Japanese automaker earned 186 billion yen. Earlier this year, Honda sank into losses over a massive air-bag recall at its supplier Takata. (AP Photo/Shizuo Kambayashi, File) FILE - In this March 10, 2016 file photo, Honda Motor Co. President and Chief Executive Takahiro Hachigo speaks during a press conference at the automaker's headquarters in Tokyo. Honda is reporting a better-than-expected 174.6 billion yen profit ($1.7 billion) for the fiscal first quarter as it gradually recovers from plant damage caused by a quake in southwestern Japan. Analysts surveyed by FactSet had forecast at 133 billion yen ($1.3 billion) quarterly profit. The April-June 2016 profit fell 6 percent from a year ago, when the Japanese automaker earned 186 billion yen. Earlier this year, Honda sank into losses over a massive air-bag recall at its supplier Takata. (AP Photo/Shizuo Kambayashi, File)

By Associated Press August 2, 2016 2 min read

TOKYO (AP) – Honda Motor Co. recorded a better-than-expected 174.6 billion yen profit ($1.7 billion) for the fiscal first quarter, as it gradually recovers from damage caused by a quake in southwestern Japan.

Analysts surveyed by FactSet had forecast at 133 billion yen ($1.3 billion) quarterly profit.

Honda said Tuesday that April-June profit fell 6 percent from a year ago, when the Japanese automaker earned 186 billion yen. Earlier this year, Honda posted losses over a massive air-bag recall at its supplier Takata.

Takata uses ammonium nitrate to create a small explosion to fill air bags. But the chemical can deteriorate and burn too fast, blowing apart a metal canister and spewing shrapnel. At least 11 people have died worldwide. Honda is among Takata’s biggest customers.

The quality-related expenses continue to weigh on results, Honda said.