Honda's profits for the July to September period more than halved after car sales continued to fall during the global downturn.
Net profit came in at 54bn yen ($587m; £359m) for the quarter, down 56% on the 123.3bn yen recorded a year earlier.
Japan's second-largest carmaker said the strong yen had contributed to a fall in sales in overseas markets.
But the fall in profits was less than had been expected, and the carmaker upgraded its full-year outlook.
Overall sales fell by 27% from a year ago.
"Honda's numbers came in a bit better than forecast and the biggest factor seems to be the year-on-year reduction in production costs," said Andrew Phillips at KBC Securities.
Source: BBC News
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