Honda posts record profits, strong sales

Honda Motor reported a record profit for the first half of its fiscal year Thursday, driven by strong sales.
Honda worldwide sales were 1.67 million units in the first two quarters, up 7 percent from last year. Sales revenues were up 10 percent to $39.7 billion. Honda revised its full year forecast upward, forecasting profit of $4.2 billion on sales of $83 billion. This will be the fifth straight year of record profits for the company.

The company's record sales are being driven by demand for its Accord and Civic sedans, particularly in the U.S., where high gas prices are steering buyers to more fuel-efficient cars. However, the company predicts that continued high fuel prices will depress demand over the next six months, to the point where Honda says it may have to offer sales incentives.