TOKYO, Aug 7 (Reuters) - Japan's Honda Motor ( HMC )

reported a 23% increase in first-quarter profit on Wednesday as

the automaker benefited from a weaker yen, higher pricing and

growing hybrid vehicle sales in the U.S. and its home market.

Japan's second-biggest carmaker said quarterly operating

profit totalled 484.7 billion yen ($3.3 billion) in the

April-June period, compared with an average estimate of 472.4

billion yen in a poll of seven analysts by LSEG.

The company maintained its full-year operating profit

forecast of 1.42 trillion yen, while slashing its sales outlook

for China by 21% to 840,000 vehicles for that period.

Honda ( HMC ) said last week its global vehicle sales grew 2% to 1.9

million over the first six months of the year, largely due to a

9% rise in sales in the U.S., its top market.

In contrast, it faced heavy headwinds in China where it saw

sales slump 23% to 416,000 vehicles.

In China, Honda ( HMC ) has been suffering from heavy price

competition and a faster-than-expected decline in the market for

internal combustion engine vehicles, CFO Eiji Fujimura told an

earnings briefing.

Honda ( HMC ) said earlier in July that it will close a factory

in the world's biggest auto market and halt vehicle production

at another plant amid intense competition from newer Chinese

auto brands.

It plans to start production at two new electric vehicle

plants in China run through two joint ventures with Chinese

automakers later this year.

Honda ( HMC ) is seeking to catch up with faster-moving global

rivals in the shift to battery-powered electric vehicles, for

which it is looking to profit from cooperation with rival

Japanese automaker Nissan Motor ( NSANF ).

The companies said on Thursday they had agreed to research

technologies for a next-generation software platform together

and sought to cooperate in areas such as batteries, e-axles and

vehicle complementation.

($1 = 147.0100 yen)