Honda has announced a global increase of 5.1% on operating profit for the year ended March 31, reaching 630.9bn yen (£3,094m).

Pre-tax profits were up 2.3% to 656.8bn yen (£3,222m), while profit after tax was up 4.7% to 8,650.1bn yen (£2,385m). Global turnover was up 6% to 8,650bn yen (£42,437m).

Its European operations saw a rise in operating profit to 41.2bn yen (£202.3m), up 59.6% on last year. Overall turnover was up 10% to 1,043bn yen (£5,118m)

But for the current year to March 2006, Honda forecast that net pre-tax profit would fall to 615bn yen (£3,046m).

"Profits at our affiliates in Asia, particularly in China, are expected to decrease," Honda senior managing director, Satoshi Aoki, said. "The business climate is becoming very tough there."