Honda reports record profit

Honda is reporting that it recorded a record-setting $3.2 billion in profits for the second quarter of 2010, causing it to raise its financial outlook for the entire year.

The $3.2 billion net income was 36 times greater than 2009's total of $86 million in profit. In general, Honda is in good shape, posting 5 quarters in a row of growth. The automaker's continued success has caused it to revise its total outlook for the 2010 financial year to $5.2 billion, eclipsing the predicted value of $4.6 billion posited by an average of analysts surveyed by Reuters.

While all auto companies struggled during the recession, Honda was able to avoid losses, largely because its fleet of smaller vehicles continued to perform well. The company is currently the second-largest Japanese automaker, still trailing its beleaguered rival Toyota and neck-and-neck with third-place Nissan.

As the country comes out of the economic recovery, carmakers are beginning to increase prices again. Drivers who are considering a purchase may want to opt for a used Honda over a new one in order to save some green.