Honda Motor Co. slashed its annual profit target by over half Friday as profit tumbled 90 percent in the latest quarter, hit by rising costs, a stronger yen and falling sales in key markets.

Japan's No. 2 automaker said net profit for the October-December period was 20.24 billion yen ($224.9 million) versus 200 billion a year earlier.

Honda's earnings numbers, while grim, still beat expectations and showed that Honda may be faring better than its Japanese rivals amid the downturn. Analysts surveyed by Thomson Financial had forecast an average 19.75 billion yen in quarterly profit.

"The results were a lot better than expected. Honda is doing well, relative to the other Japanese car makers," said Credit Suisse auto analyst Koji Endo.

The maker of the popular Accord and Civic models cut its profit target for the fiscal year through March by 57 percent, to 80 billion yen ($888.9 million) from 185 billion yen. It also lowered its revenue target by 3 percent to 10.1 trillion yen.

Still, that profit forecast isn't as bleak as the outlook for other Japanese automakers.

Toyota Motor Corp., the country's top automaker, has said it expects its first operating loss in 70 years this fiscal year, and media reports and analysts predict Nissan Motor Co. will also book a loss for the period. Toyota is due to report fiscal third quarter earnings next Friday, and Nissan is to report later in February.