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.

Honda Motor Co. raised its annual profit forecast to reflect softer than initially indicated US import tariffs on Japanese goods, although those levies weighed on the company’s latest quarterly performance.

First-quarter profit halved from a year earlier due in part to the U.S. levies, though the automaker raised its annual earnings forecasts, citing a smaller-than-feared tariff hit.