Honda Motor has reported a 41% drop in three-month profits, hit by falling sales and the strengthening yen.
Net profit was 123 billion yen ($US1.3 billion) for the three months from July to September.
The company has cut its profit forecast for the full year to 485 billion yen, down 19% on last year.
Honda is Japan's second-biggest carmaker. It is considered one of the better-placed carmakers to deal with the global downturn, due to its line-up of smaller, more fuel-efficient models.
But it is vulnerable to the strong yen, which makes Honda's vehicles more expensive in the United States, where customers are already struggling with the economic downturn.
The US dollar has fallen by about 16% against the yen since the start of the year.
Honda predicts that its US sales in October will be more than 20% below the level for the same month last year.
Executive vice president Koichi Kondo said sales of new passenger cars are down, as well as light trucks and SUVs.
