Japan's No. 3 automaker said on Thursday it earned a consolidated net profit of 78.22 billion yen in the April-June quarter, up 25.7 per cent from the same period a year ago, with the recent slump in the yen's value against the dollar amplifying it US-earned profits in yen terms.

At Thursday's exchange rate of about 143 yen to the dollar, its consolidated net profit was $546 million. Consolidated operating profits also rose a brisk 30.4 per cent to 143.64 billion yen on sales of 1.6 trillion yen.

Honda's robust earnings were in contrast to disappointing results from electronics manufacturer Sony Corp, which late last month announced a drop of nearly five per cent in operating profits for the April-June quarter despite forecasts by some analysts of a 10-per cent gain.

Although Honda, like Sony, was hurt by a slump in sales at home and in financially troubled Southeast Asia, this was more than offset by strong demand for its Accord sedan and other models in the US market. The weak yen has further lifted the value of profits earned in dollars and subsequently converted to yen, and analysts expected such favourable exchange rate movements to power Honda comfortably to record profits for the full year to next March 31.