Honda (NYSE:HMC) said this past week that its profits for the April to June quarter fell 7% to $1.2 billion. Honda's sales have been pretty good, but its costs are up: It's building several new factories around the world in a bid to increase sales 50% over the next few years.

The benefits of that spending won't reach Honda's bottom line for a few years yet, but how are things looking in the near term? In this video, contributor John Rosevear dives into Honda's latest results, and looks at the outlook for the company over the next few quarters.