Honda's (HMC) Profits Rise As Its Sales Increase In US

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It is not enough that the Big Three have to contend with Toyota (TM) gaining market share in the US every month. Honda’s (HMC) earnings and guidance suggested that the company will become a more formidable competitor in the market.

An increase in exports allowed Honda to post a 16% increase in earnings for the quarter that ended in June sending net income to $1.38 billion. Honda also raised its forecast for the balance of the fiscal year which ends on March 30, 2008.

Honda’s success outside it home market now makes it the third most valuable car company in the world behind DaimlerChrysler (DCX) and Toyota. According to Reuters, Honda’s "plants are running near full capacity to fill orders for the Civic, CR-V and Fit models overseas." These cars are aimed at the center of the fuel-efficient vehicle markets in the US and Europe.

Factories running near capacity is not exactly a boast that US car companies can make.

Douglas A. McIntyre