Honda's profit jumps 20% on strong US sales

Japanese car giant Honda's net profit jumped 20% in the first quarter on strong sales in its biggest market, North America, and cost-cutting moves.

Its net profit rose to 186bn yen ($1.5bn; £960m) in April to June from 155.6bn yen a year ago - widely beating expectations of 145.7bn yen.

The company said a weaker yen helped offset higher quality-related costs.

Honda recalled another 4.5 million vehicles earlier this month over faulty airbags made by troubled firm Takata.

Japan's third biggest car maker has been the hardest hit by the continuing saga over a deadly defect in airbags made by the equipment parts maker, with 24.5 million of its cars being recalled since 2008.

Seven people have been killed in Honda cars which were fitted with Takata air bags.

"There is a possibility that Honda will need to recognize additional provisions when new evidence related to product recalls arise," the company said in a statement on Friday.

"However, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report."

Honda also reported sales up by 15.5% to 3.7tn yen, led by a nearly 27% increase in sales in North America.

The company still expects to make a net profit of 525bn yen, up 3% from the previous year.