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The result beat a consensus estimate for 148.7 billion yen.Quarterly operating profit fell 27 percent to 250.22 billion yen, while sales grew 9 percent to a record 3.088 trillion yen.Car sales in the quarter rose 6.2 percent to 957,000 units fuelled by brisk sales of the CR V and Civic models in North America and Europe. That made up for the chronic weakness in domestic is assuming conservative foreign exchange rates while being aggressive about research and development costs, said Fujio Ando, senior managing director at Chibagin Asset Management. Have a feeling it will revise up its forecasts in the future.Honda is factoring in R spending of 590 billion yen this year, up nearly 40 billion yen from 2006/07.Honda forecast a 13 yen increase in its dividend this year to 80 yen.

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