The company raised its full-year operating profit forecast to 700 billion yen from 500 billion yen, and said it expected the yen to trade at an average rate of 140 per dollar, five yen weaker than it had previously estimated.

The carmaker raised annual earnings forecasts following a trade deal between Japan and the U.S. struck in July.

Honda Motor reported a 50% drop in first-quarter operating profit on Thursday, as a stronger yen and the impact of U.S. President Donald Trump's tariffs took a toll on its results.