Honda’s fourth-quarter profit plummets 86 percent

Honda's net profit in the January-March quarter plunged 86 percent compared with the same period a year ago because of a one-time corporate tax levied on its Chinese joint venture, the Japanese carmaker said Friday. But Japan's second-biggest automaker still reported a record profit for the fiscal year just ended on booming overseas sales.

Honda Motor Co.'s profit for the fourth fiscal quarter totaled 25.4 billion yen ($244.2 million), down from 176 billion yen the same period the previous year.

Quarterly sales edged down 1 percent to 3.056 trillion yen ($29.4 billion) from 3.088 trillion yen.

Honda wasn't upbeat about coming months, as fears grow about an unfavorable yen-dollar exchange rate that could cut into the overseas profits of giant Japanese exporters. Also adding to the pessimism are concerns about the North American market, where the credit crisis could crimp sales.