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

  • FILE - In this Wednesday, Oct. 28, 2015 file photo, Honda Motor Co. CEO Takahiro Hachigo speaks next to Honda FCX Clarity at Honda press conference during the media preview at the Tokyo Motor show in Tokyo. Honda reported a quarterly profit of 127.7 billion yen ($1 billion) Wednesday, Nov. 4, 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.  (AP Photo/Eugene Hoshiko, File)

    FILE - In this Wednesday, Oct. 28, 2015 file photo, Honda Motor Co. CEO Takahiro Hachigo speaks next to Honda FCX Clarity at Honda press conference during the media preview at the Tokyo Motor show in Tokyo. Honda reported a quarterly profit of 127.7 billion yen ($1 billion) Wednesday, Nov. 4, 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. (AP Photo/Eugene Hoshiko, File)  (The Associated Press)

  • Japanese air bag maker Takata Corp. CEO Shigehisa Takada, center, apologizes during a press conference in Tokyo Wednesday, Nov. 4, 2015. U.S. auto safety regulators fined Japan's Takata Corp. $70 million Tuesday for concealing evidence for years that its air bags are prone to explode with grisly consequences - a defect linked to eight deaths and more than 100 injuries worldwide. (Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT

    Japanese air bag maker Takata Corp. CEO Shigehisa Takada, center, apologizes during a press conference in Tokyo Wednesday, Nov. 4, 2015. U.S. auto safety regulators fined Japan's Takata Corp. $70 million Tuesday for concealing evidence for years that its air bags are prone to explode with grisly consequences - a defect linked to eight deaths and more than 100 injuries worldwide. (Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT  (The Associated Press)

  • Japanese air bag maker Takata Corp. CEO Shigehisa Takada speaks at a press conference in Tokyo Wednesday, Nov. 4, 2015. U.S. auto safety regulators fined Japan's Takata Corp. $70 million Tuesday for concealing evidence for years that its air bags are prone to explode with grisly consequences - a defect linked to eight deaths and more than 100 injuries worldwide. (Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT

    Japanese air bag maker Takata Corp. CEO Shigehisa Takada speaks at a press conference in Tokyo Wednesday, Nov. 4, 2015. U.S. auto safety regulators fined Japan's Takata Corp. $70 million Tuesday for concealing evidence for years that its air bags are prone to explode with grisly consequences - a defect linked to eight deaths and more than 100 injuries worldwide. (Kyodo News via AP) JAPAN OUT, MANDATORY CREDIT  (The Associated Press)

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.