TOKYO — Honda reported a 2.6 percent advance in operating profit in the latest quarter as brisk North American earnings, aggressive cost containment and lower warranty outlays offset shrinking global sales and losses from unfavorable foreign exchange rates.
Operating profit increased to 220.1 billion yen ($2.04 billion) in fiscal second quarter ended Sept. 30, the Japanese automaker announced in its earnings report on Friday.
Net income declined 6.7 percent to 196.5 billion yen ($1.82 billion) in the three-month period, partly because the company was hit by higher income tax expenses in India.
Revenue retreated 2.9 percent to 3.73 trillion yen ($34.6 billion), as worldwide sales dipped 0.4 percent to 1.24 million vehicles in the July-September quarter.
North America was a profit engine, driving Honda higher on robust sales of not only light trucks such as the CR-V crossover but passenger cars such as the Civic small sedan.
“As the market shrinks the CR-V, the new Passport and…